Bitcoin Could Hit $112,000 This Year, CryptoQuant Says

Bitcoin prices could soar to new highs this year if the current trend of inflows into spot exchange-traded funds (ETFs) continues, according to on-chain data provider CryptoQuant.

In a tweet on Sunday, CryptoQuant CEO Ki Young Ju said the “worst case” for bitcoin was at least $55,000, or a nearly 15% increase from Monday’s prices. He based his projections on the impact of inflows on bitcoin’s market capitalization and a metric ratio that has historically signaled if prices were “overvalued” or “undervalued.”

Source: Ki Young Ju

“Bitcoin market has seen $9.5B in spot ETF inflows per month, potentially boosting the realized cap by $114B yearly,” Ki said. “Even with $GBTC outflows, a $76B rise could elevate the realized cap from $451B to $527-565B.”

The realized cap is a measure of the value of all active tokens at their last traded price. It differs from the market cap, which is the product of the current price and the total supply.

Ki cited a ratio that tracks the market cap to the realized cap, known as the MVRV ratio, as a possible indicator of a price top for bitcoin. The MVRV ratio would reach 3.9 at prices between $104,000 and $112,000, a level that has historically marked a peak in the market cycle.

Spot bitcoin ETFs have been a major catalyst for the recent rally in the cryptocurrency, as they offer investors a convenient and regulated way to gain exposure to the asset. Since their launch in late January, spot bitcoin ETFs have accumulated more than 192,000 bitcoin in holdings, as of Friday, according to data from CryptoQuant.

Bitcoin was trading at around $48,100 on Monday, up about 60% year-to-date and 12% in the past week.

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