In a compelling analysis, CryptoQuant’s CEO, Ki Young Ju, has unveiled a bullish outlook for Bitcoin, suggesting that the cryptocurrency could soar to an impressive $112,000 this year. This ambitious prediction hinges primarily on the anticipated inflows from Exchange Traded Funds (ETFs), according to Ju.
Read more about his analysis below.
Ki Young Ju, in a series of insightful tweets, sheds light on the pivotal role of spot ETF inflows in this projected ascent. He foresees a monthly surge of $9.5 billion, wielding the potential to bolster Bitcoin’s realized capitalization by a staggering $114 billion annually. This optimistic outlook hinges on the continuous stream of ETF investments, envisioning a substantial year-end surge to $112,000.
Also Read: Grayscale CEO Eyes Options for Spot Bitcoin ETF, Urges SEC Approval
Despite the possibility of outflows from the Grayscale Bitcoin Trust ($GBTC), Ju remains steadfastly optimistic. He predicts a noteworthy uptick of $76 billion, potentially elevating the realized capitalization from the current $451 billion to a range between $527 billion and $565 billion.
An intriguing highlight is the significant Bitcoin holdings of over $3.19 billion, comprising nearly 50,000 BTC, held by investment giant BlackRock through its ETF.
Historical MVRV Ratios
Drawing on historical data, Ju emphasizes the significance of MVRV (Market-Value-to-Realized-Value) ratios. He notes that Bitcoin market bottoms historically manifest at a ratio of 0.75, while market tops are observed at a ratio of 3.9.
Amidst the enthusiasm, Ki Young Ju acknowledges the uncertainty and speculates on Bitcoin’s potential price range. He suggests that the influx of funds from ETFs could drive Bitcoin’s price to soar between $104,000 and $112,000. However, a note of caution is sounded, with the possibility of a more conservative price range between $55,000 and $59,000 if excitement is tempered.
Understanding the Market Activity
Breaking a seven-week stability streak, Bitcoin’s current weekly candlestick shows a notable gain of 12.58%. Trading at over $48,000, the cryptocurrency is experiencing increased activity, with the last 24-hour trading volume reaching an impressive $20.65 billion.
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This analyst is bullish on Bitcoin, but will the market agree? What’s your price prediction for 2024?
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