Key Points
- Ki Young Ju, CEO of CryptoQuant, predicts Bitcoin could reach $112,000 by the end of 2024.
- The prediction is based on Market Value to Realized Value (MVRV) metrics and the current interest in spot Bitcoin exchange-traded funds (ETFs).
- Historically, BTC market bottoms occur when the MVRV ratio reaches around 0.75, and market tops typically occur when the ratio hits approximately 3.9.
- Spot ETFs, recently introduced in the US, have seen total inflows of around $9 billion.
- Other analysts and industry executives, such as Markus Thielen and Anthony Scaramucci, also hold a bullish outlook on Bitcoin.
In the dynamic realm of cryptocurrencies, Bitcoin (BTC) continues to be of prime interest for investors and enthusiasts.
Understanding the factors that drive its price is essential for making informed investment decisions.
Bitcoin’s Potential Future Price
A recent analysis, which takes into account historical trends and current market indicators, provides insights into potential future price scenarios for BTC.
Ki Young Ju, the CEO of crypto analytics firm CryptoQuant, predicts that Bitcoin could reach new heights by the end of 2024.
CryptoQuant CEO’s Prediction
This forecast is based on the Market Value to Realized Value (MVRV) metrics.
MVRV compares Bitcoin’s current market value with its realized value, offering insights into whether the crypto asset is overvalued or undervalued relative to its past performance.
Ki Young Ju mentioned that historically, BTC market bottoms occur when the MVRV ratio hits around 0.75.
This suggests that Bitcoin may be considered undervalued at this point, possibly presenting buying opportunities for investors.
On the other hand, market tops typically happen when the MVRV ratio reaches approximately 3.9.
This indicates that Bitcoin may be overvalued, potentially signaling a price correction.
Role of Spot ETFs
Considering this metric, Ki Young Ju believes that BTC is positioned to achieve the estimated price of $104,000 and $112,000 due to the current interest in spot Bitcoin exchange-traded funds (ETFs).
However, this figure can only be reached if the current ETF inflows continue, indicating continued bullish sentiment among investors.
Spot ETFs were recently introduced into the United States market after previously only having futures contracts.
So far, the 11 investment products approved by the country’s Securities and Exchange Commission (SEC) have seen total inflows of around $9 billion.
Bitcoin Price Without Hype
Ki Young Ju also predicted that without the influence of hype and speculative fervor, if BTC maintains its current MVRV level of 2.07, the crypto asset will likely reach between $55,000 and $59,000 this year.
At present, BTC is trading at around $48,330, with a 12.65% gain over the last seven days, according to data from CoinMarketCap.
Other Analysts’ Predictions
Other analysts and industry executives also have a positive outlook on Bitcoin.
Markus Thielen, the head of research at Matrixport, recently predicted that BTC could reach $48,000, attributing the potential surge to the Chinese New Year.
Similarly, in January, Anthony Scaramucci, the CEO of alternative investment company SkyBridge Capital, made a forecast that BTC could reach $69,000 by the end of the year.
These predictions further emphasize the bullish sentiment surrounding Bitcoin.