Blockchain News

Crazy Bitcoin Price Prediction For 2024

The analysis considers the impact of inflows on Bitcoin's market capitalization and a metric ratio historically indicating if prices are "overvalued" or "undervalued."

Bitcoin may reach an impressive $112,000 this year, according to on-chain data provider, CryptoQuant. 

CEO Ki Young Ju points out the positive impact of inflows related to spot exchange-traded funds (ETFs) on Bitcoin's market capitalization. 

Ki Young Ju refers to the Bitcoin market witnessing monthly spot ETF inflows of $9.5 billion, potentially raising the realized cap by $114 billion annually. The key metric involves tracking Bitcoin's market capitalization to realized capitalization ratio, indicating a potential top at $104,000 to $112,000. 

Historically, a ratio of 3.9 at these levels has marked a price top, hinting at a substantial positive impact on Bitcoin's price. Currently standing at 2.07, this metric indicates a worst-case scenario price point for Bitcoin close to $60,000, assuming no major hype in the coming months.

The best-case scenario envisions Bitcoin soaring to $112,000, while even the growing GBTC outflows are unlikely to have a significant negative effect. However, considering a "worse-case" scenario, Ju sees Bitcoin reaching $55,000, indicating a nearly 15% increase from current prices. 

Bullish Sentiment and Market Dynamics

Amidst these predictions, the upcoming fourth halving, just a couple of months away, adds anticipation to how it might impact Bitcoin's price.

Recent market activity illustrates the tangible impact of ETF inflows on Bitcoin prices. Over the past 10 days, net gains of $8 billion have been recorded in new spot Bitcoin ETFs. 

Leading the inflows are BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin ETF (FBTC), with $2.6 billion and $2.2 billion, respectively. Bitcoin is currently trading at $47,791, reflecting a notable 11% increase from the previous week's levels.

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