Bitcoin prices are poised for a rally this year, and in a best-case scenario, assets could exceed $100,000 for the first time in history, said Ki Yong-joo, CEO of CryptoQuant.
However, for this to happen, certain developments must occur. It primarily relates to the Spot Bitcoin ETF, which was recently approved in the US.
ETFs behind BTC’s upcoming rally?
Since the entire cryptocurrency community and much of the traditional financial world began to realize that it was inevitable that the SEC would approve a spot Bitcoin ETF sooner or later, experts believe these developments will become a selling event. I was guessing that it was. That turned out to be true, as BTC fell more than 10 grand in the first two weeks of ETF trading in January.
While there was some debate about the immediate impact on BTC price, most were very bullish about the long-term impact. CryptoQuant’s CEO also seems confident that crypto prices will rise this year, mainly due to inflows into ETFs.
Although it has already been a month since the ETF started operating, Young-joo said that the BTC market has “$9.5 billion in spot ETF inflows per month,” which could increase the realization limit by $114 billion annually. insisted.
This will have a huge positive impact on BTC price, which could rise to $112,000 this year in the best case scenario and $55,000 in the worst case scenario. According to CryptoQuant’s CEO, an increase in GBTC outflows will not have a significant negative impact.
“Even if GBTC dollars were to flow out, the $76 billion increase could push the realization ceiling from $451 billion to between $527 billion and $565 billion.”
Will $100,000 be destroyed?
Those who have been following the crypto market trends in 2021 probably remember the laser eye that became a hot topic among BTC supporters. As the asset soared past $50,000 and $60,000, the laser eyes remained as the profile picture of Indicated.
That never happened back then. Just the opposite, cryptocurrencies slumped in the following years. However, Yong Joo believes that the ETF inflow trend could drive the next big bull market and break through that level for the first time.
He also attributed the community-wide bullish sentiment to MVRV, which has a market bottom of 0.75 and a market high of 3.9. Currently, this indicator is at 2.07, meaning that if there is no hype over the next few months, the worst-case price point for BTC will be close to $60,000.
However, considering BTC’s historical price performance around the halving, this seems rather unlikely as retail investors tend to follow trends. And with the fourth halving just a few months away, speculation is already rampant about how it will affect BTC price.