Bitcoin’s Potential Surge to $112,000: CryptoQuant, a cryptocurrency analytics firm, suggests that Bitcoin (BTC) could reach a price of $112,000 by 2024, driven by the trend of inflows related to spot exchange-traded funds (ETFs).
Analysis by CryptoQuant CEO: According to CryptoQuant CEO Ki Young Ju, the current trend of inflows into spot ETFs could continue, potentially leading to a surge in Bitcoin’s price. Ju believes that even in the “worst case scenario,” Bitcoin could reach at least $55,000, representing a nearly 15% increase from current prices.
Impact of Spot ETF Inflows: The influx of spot ETFs into the BTC market amounts to $9.5 billion per month, potentially increasing the realized limit by $114 billion. Ju highlights that despite outflows from Grayscale Bitcoin Trust ($GBTC), a rise of $76 billion could elevate the realized capitalization from $451 billion to $527-565 billion.
Market Capitalization to Realized Capitalization Ratio: Ju also points out that the ratio tracking Bitcoin’s market capitalization to realized capitalization suggests a potential price top for Bitcoin between $104,000 and $112,000. Historically, a ratio of 3.9 has marked price tops for Bitcoin.
Overview of Spot Bitcoin ETFs: Nine leading spot Bitcoin exchange-traded funds (ETFs), including BlackRock (IBIT), Fidelity (FBTC), Bitwise (BITB), and others, have surpassed 200,000 BTC in assets, totaling $9.5 billion. These ETFs collectively own almost 1% of the total 21 million Bitcoins, surpassing the holdings of MicroStrategy, Tether, and all public Bitcoin miners combined.
Conclusion: CryptoQuant’s analysis suggests that the influx of spot ETFs could significantly impact Bitcoin’s price, potentially driving it to $112,000 by 2024. The increasing adoption of ETFs and their growing assets under management signal bullish sentiment in the market, with potential implications for Bitcoin’s long-term trajectory.
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