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Amid significant inflows into spot Bitcoin exchange-traded funds (ETFs), Bitcoin's price could soar to an all-time high of $112,000, according to a recent analysis by CryptoQuant. The report explores the impact of ETF investments on Bitcoin's realized cap and delves into historical market patterns, providing insights into potential price scenarios. [embed]https://twitter.com/ki_young_ju/status/1756498625205502301[/embed]
Key Points:
- Influential ETF Inflows: CryptoQuant's founder and CEO, Ki Young Ju, highlights the substantial monthly spot ETF inflows, totaling $9.5 billion, potentially elevating Bitcoin's realized cap by $114 billion annually. Despite outflows from the Grayscale Bitcoin Trust (GBTC), the report suggests a potential rise in the realized cap from $451 billion to $527-565 billion.
- MVRV Ratio Analysis: Ju introduces the Market Value to Realized Value (MVRV) ratio as a crucial metric, historically aligning market bottoms with an MVRV ratio of 0.75 and peaks with a ratio of 3.9. The report suggests that if ETF inflows persist, the MVRV ratio may reach levels indicating a market peak, projecting Bitcoin's price to reach between $104,000 and $112,000.
- Alternative Scenario: Without intensified market hype and with the MVRV ratio at 2.07, the report anticipates a more conservative price range for Bitcoin, oscillating between $55,000 and $59,000.