Kee Young Ju, the head of CryptoQuant, states that the worst scenario for Bitcoin this year is to reach $55,000 and stop there. In the best scenario, the price will reach $112,000.
Bitcoin price may reach $112,000 by the end of 2024, if the current trend of inflows into exchange-traded funds (ETFs) on Bitcoin will continue, writes CoinDesk, citing the head of CryptoQuant.
Spot bitcoin-ETFs for the month accumulated 200,000 coins worth $9.5 billion. Bitcoin-ETFs own almost 1% of the total number of Bitcoins from the 21 million supply. BlackRock (IBIT) and Fidelity (FBTC) have accumulated the largest amounts of funds in under a month. IBIT accumulated 82,515 BTC worth $3.7 billion, while FBTC accumulated 59,380 BTC worth $2.6 billion. The total inflows into the new ETFs were larger than the net outflows from Graysacle ETFs.
Kee Young Ju, CryptoQuant’s chief executive, believes the “worst-case scenario” for bitcoin is $55k. His prediction is based on an analysis of the impact of fund inflows on bitcoin’s capitalization and the MVRV* metric, which has historically indicated whether an asset is “overvalued” or “undervalued.”
“Historically, the bottom for bitcoin occurs at the MVRV* level of 0.75 and the top at 3.9,” the CryptoQuant executive points out. “The MVRV indicator, which tracks the ratio of Bitcoin’s market capitalization to realized capitalization, signals Bitcoin reaching a price high in the $104,000-112,000 range,” adds Kee Young Ju in his analysis.
According to Kee Young Ju, $9.5 billion is injected into Bitcoin every month as a result of inflows into spot ETFs, potentially increasing realized capitalization by $114 billion per year. Even with GBTC outflows, a $76 billion increase could raise realized capitalization from $451 billion to $527-565 billion.
* MVRV (the ratio of market capitalization to realized capitalization of an asset, which takes into account the purchase price of the last owners) is an indicator of the accumulation phase by large players and the determination of the minimum price. When the ratio is below 1, the asset is in the accumulation phase, making its prices attractive for investment. A value of 3 indicates overbought.
