- CryptoQuant predicts that bitcoin price could reach $112,000 in 2024.
- The worst-case scenario being $55,000 for bitcoin price, which is still a 15% increase.
CryptoQuant, a company that provides on-chain data and analysis, has made a bullish prediction for bitcoin price in 2024. The company said that bitcoin price could hit $112,000 this year if the inflows from spot exchange-traded funds (ETFs) continue at the current rate. The company also said that the worst-case scenario for bitcoin price was $55,000, which is still a 15% increase from the current level.
The prediction was based on the impact of inflows on bitcoin’s market capitalization and a ratio that measures the valuation of bitcoin. CryptoQuant’s CEO, Ki Young Ju, said that the bitcoin market has seen $9.5 billion in spot ETF inflows per month, which could boost the realized cap by $114 billion yearly.
Ki said:
“Historically, $BTC market bottoms occur at an MVRV of 0.75 and tops at 3.9. With current spot ETF inflow trends, the top price could reach $104k-$112k. Without hype, maintaining the current level of 2.07, the price would be $55-59k.”
Spot ETFs Boost Bitcoin Demand
As of Friday, spot ETFs have accumulated more than 192,000 bitcoin in holdings, since their launch nearly a month ago. This represents a significant increase in demand for bitcoin, which could drive up its price in the long term. Spot ETFs also have lower fees and risks than futures-based ETFs, which makes them more appealing to investors.
The top performers among the spot bitcoin ETFs are BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund, with $4 billion and $3.4 billion in holdings respectively. ARK 21Shares Bitcoin ETF also joined the billion-dollar club on February 10.
Meanwhile, Grayscale Bitcoin Trust (GBTC) has seen less outflows, with the lowest daily withdrawal on February 9. Analysts expect more growth as trading firms finish their assessments of these investment products.
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