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The price of Bitcoin may achieve a new all-time high of $112,000, driven by substantial inflows into spot Bitcoin exchange-traded funds (ETFs).
A recent analysis by CryptoQuant suggests that the prospective peak of $112,000 for Bitcoin’s value relies on sustained buying momentum from the influx of investments into spot Bitcoin ETFs. The report also presented a “worst-case” scenario in which Bitcoin could still rise to a minimum of $55,000.
Bitcoin Price May Reach $112,000
“The Bitcoin market has experienced $9.5 billion in spot ETF inflows monthly, potentially increasing the realized cap by $114 billion annually,” stated CryptoQuant founder and CEO Ki Young Ju.
“Despite outflows from GBTC, a $76 billion increase could raise the realized cap from $451 billion to between $527 billion and $565 billion,” Ju added.
#Bitcoin could reach $112K this year driven by ETF inflows, worst-case $55K.https://t.co/HrkV3TU8Ul pic.twitter.com/jBn6HWpt9b
— Ki Young Ju (@ki_young_ju) February 11, 2024
Ju further explained that historically, the Bitcoin market has demonstrated a trend where its lowest price points, or market bottoms, correspond with a Market Value to Realized Value (MVRV) ratio of 0.75, while market peaks are associated with an MVRV ratio of 3.9.
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The MVRV ratio compares the market capitalization (the current market value of all mined Bitcoins) to the realized capitalization (the value of all Bitcoins at the price they were acquired), acting as a crucial metric for evaluating Bitcoin’s valuation extremes.
The report indicated that if the current trends in Bitcoin ETF inflows persist, the MVRV ratio may reach levels that typically signify a market peak, potentially driving Bitcoin’s price to between $104,000 and $112,000.
However, in the absence of heightened market enthusiasm and with the MVRV ratio at 2.07, Bitcoin’s price was anticipated to remain within the range of $55,000 to $59,000.
Recent ETF Inflows and Their Effects
Recent market developments provided a clear illustration of the impact ETF inflows can have on Bitcoin’s price. As of the time of this writing, Bitcoin is trading at $48,129, reflecting a 12.57% increase from the previous week, according to CoinMarketCap.
The Bitcoin market has been notably affected by inflows into new spot Bitcoin ETFs, which have accumulated $8 billion over 10 days of net gains. ETFs from BlackRock and Fidelity, specifically the iShares Bitcoin Trust (IBIT) and Wise Origin Bitcoin ETF (FBTC), have led these inflows with $2.6 billion and $2.2 billion respectively.
Moreover, the market is closely monitoring the upcoming Bitcoin halving event in April, which is expected to further enhance Bitcoin’s price due to the decrease in mining rewards and subsequent scarcity.
The post Bitcoin Price’s Potential Surge to $112K Fueled by ETF Inflows: CryptoQuant appeared first on Cryptonews.
