Bitcoin price is poised for an impending rally this year, and in a best-case scenario, the asset could rise above $100,000 for the first time ever, CryptoQuant CEO Ki Young Ju said.
However, for this to happen, certain developments must occur, primarily related to the spot Bitcoin ETFs recently approved in the United States.
ETFs behind the upcoming BTC rally?
Ever since the entire crypto community and a larger portion of the traditional financial world realized that the SEC will inevitably approve spot Bitcoin ETFs sooner rather than later, experts have been speculating whether these developments will be a sellout. This turned out to be true as BTC plunged by over ten grand in the first two weeks of ETF trading in January.
While there was debate about the immediate impact on BTC price, most were quite optimistic about the long-term impact. The CEO of CryptoQuant also seems convinced that the price of the cryptocurrency will rise this year, largely due to inflows into the ETFs.
With the ETFs already a month into operation, Young Ju claimed that the BTC market has seen “$9.5 billion in spot ETF inflows per month,” pushing its realized cap by $114 billion could increase per year.
This could have a massively positive impact on the BTC price, pushing it to $112,000 this year in a best-case scenario or $55,000 in a worst-case scenario. According to the CEO of CryptoQuant, even the growing GBTC outflows will not have such a significant negative impact:
“Even with $76 billion in GBTC outflows, a $76 billion increase could push the realized cap from $451 billion to $527 billion to $565 billion.”
Want to win $100,000?
Those who have been following developments in the crypto market in 2021 probably remember the laser eyes that went viral among BTC proponents. As the asset rose above $50,000 and $60,000, the laser eyes remained as profile pictures of
That never happened back then. Quite the opposite, as the cryptocurrency collapsed over the next few years. However, Young Ju believes that the ETF inflow trend could spark the next massive uptrend that could see this level broken for the first time.
He also attributed the overall bullish sentiment in the community to the MVRV, which shows market lows at 0.75 while highs are at 3.9. Currently, the metric is at 2.07, which would mean the BTC price is close to $60,000 in a worst-case scenario if there is no hype in the following months.
However, given BTC's historical price performance around and after halvings, this seems unlikely as retail investors tend to follow trends. And the fourth halving is just a few months away and there is already speculation about how it will affect the BTC price.
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