By
Bena Ilyas
May 17th, 2024
In addition to Ki Young Ju’s bullish outlook on Bitcoin, there are other analysts and industry executives who share a positive sentiment towards the crypto asset.
In the ever-evolving world of cryptocurrencies, Bitcoin (BTC) remains a focal point for investors and enthusiasts alike. Given its volatile nature, understanding the factors that influence its price movements is crucial for making informed decisions. A recent analysis, grounded in historical trends and current market indicators, offers insights into potential future scenarios for BTC’s price this year. Ki Young Ju, the chief executive officer of crypto analytics company CryptoQuant, believes that Bitcoin reach new levels before the end of the year.
CryptoQuant CEO: Spot ETFs Could Drive Bitcoin Price to the Moon
This prediction was based on Market Value to Realized Value (MVRV) metrics, which compare Bitcoin’s current market value with its realized value, providing insights into whether the crypto asset is overvalued or undervalued relative to its historical performance.
The CryptoQuant CEO stated on X (formerly Twitter) that historically, BTC market bottoms occur when the MVRV ratio reaches around 0.75. This suggests that at this point, Bitcoin may be considered undervalued, potentially presenting buying opportunities for investors. Conversely, market tops typically occur when the MVRV ratio reaches approximately 3.9, indicating that Bitcoin may be overvalued and potentially signaling a price correction.
Using 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, the figure can only be achieved if current ETF inflows persist, indicating continued bullish sentiment among investors.
The 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 on Thursday.
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.
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. pic.twitter.com/RqphTGYroX
— Ki Young Ju (@ki_young_ju) February 11, 2024
Currently, BTC is trading at around $48,330, with a 12.65% gain over the last seven days, according to data from CoinMarketCap.
Analysts Bullish on Bitcoin
In addition to Ki Young Ju’s bullish outlook on Bitcoin, there are other analysts and industry executives who share a positive sentiment towards the crypto asset. 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. Thielen based his forecast on Bitcoin’s historical performance during the Chinese festival.
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.