Bitcoin’s Bull Run Has Plenty of Steam Left, These Indicators Suggest
Bitcoin has had a remarkable year, more than doubling in value and outperforming traditional assets. However, several indicators and forecasts suggest that bitcoin still has room to run. Key metrics such as the Puell Multiple, MVRV Z-Score, and Mayer Multiple indicate that bitcoin is far from overvalued and could continue rallying in 2024. Goldman Sachs also predicts a significant increase in crypto trading volumes in the next 1-2 years.
Indicators Point to Bitcoin’s Continued Upward Trend
The Puell Multiple, which compares the daily bitcoin issuance value to its one-year average, is currently at 1.53. Readings above 4 have historically marked cycle peaks. The MVRV Z-Score is at 1.6, well below the overvaluation zone of 8. The Mayer Multiple, which measures bitcoin’s price versus its 200-day moving average, is at 1.4, not yet in overbought territory.
All of these indicators suggest that bitcoin could continue trending upwards throughout 2024. This aligns with Goldman Sachs’ forecast of increased crypto trading volumes as adoption grows.
Potential Catalysts for Bitcoin’s Rise in 2024
2024 could be a significant year for bitcoin if spot BTC exchange-traded funds (ETFs) are approved by the SEC. Bitwise Asset Management predicts that this approval could happen in early 2024 and has boldly projected that bitcoin could reach $80,000 if it does. The launch of spot ETFs combined with bitcoin’s halving event in May 2024 create favorable conditions for price surges.
In 2024… Bitcoin will set a new all-time high, the spot bitcoin ETF will be the most successful ETF launch of all time, Coinbase’s revenue will double, and more…
Here are 10 Crypto Predictions for 2024 by the team at @BitwiseInvest
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— Ryan Rasmussen (@RasterlyRock) December 13, 2023
Additionally, Bitwise estimates that spot bitcoin ETFs could capture 1% of the total $7 trillion US ETF market, resulting in over $70 billion in inflows. Even a fraction of this entering bitcoin markets could have a significant impact.
The Outlook for Bitcoin in 2024
With multiple metrics indicating that bitcoin is undervalued and favorable fundamentals for a bullish 2024, it seems likely that the top cryptocurrency will continue to surge to new all-time highs throughout the coming year.
Hot Take: Bitcoin’s Bull Run Is Far from Over
Despite already doubling in value and outperforming traditional assets, bitcoin still has room to grow. Key indicators suggest that bitcoin is not yet overvalued and could continue its upward trend in 2024. Goldman Sachs also predicts increased crypto trading volumes as adoption increases. The potential approval of spot BTC exchange-traded funds (ETFs) in 2024, coupled with bitcoin’s halving event, could further propel prices to new highs. Bitwise Asset Management estimates that over $70 billion could flow into bitcoin ETFs, contributing to its rise. With these factors aligning, it seems likely that bitcoin’s bull run is far from over.
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