CryptoQuant suggests Bitcoin ETFs inflows may drive BTC price to $112k
CryptoQuant, a cryptocurrency analytics firm, predicts that the price of Bitcoin (BTC) could surge to $112,000 by 2024. The company’s CEO, Ki Young Ju, believes that the current trend of inflows related to spot exchange-traded funds (ETFs) will continue, with the worst-case scenario for Bitcoin being a price of at least $55,000, which is almost 15% higher than the current price. These targets were determined based on the impact of inflows on Bitcoin’s market capitalization and a metric ratio that historically indicated whether prices were overvalued or undervalued.
Ki Young Ju pointed out that the BTC market has been experiencing an influx of spot ETFs at a rate of $9.5 billion per month, which could potentially increase the realized limit by $114 billion. He also highlighted that the ratio tracking Bitcoin’s market capitalization to realized capitalization could indicate a top for Bitcoin between $104,000 and $112,000. Historically, a ratio of 3.9 has been associated with price tops.
In just one month since their launch, the nine leading spot Bitcoin ETFs have accumulated over 200,000 BTC, which is equivalent to $9.5 billion in assets. These ETFs include BlackRock (IBIT), Fidelity (FBTC), Bitwise (BITB), Ark 21Shares (ARKB), Invesco (BTCO), VanEck (HODL), Valkyrie (BRRR), Franklin Templeton (EZBC), and WisdomTree (BTCW). Together, they own almost 1% of the total supply of 21 million Bitcoins, which is more than what MicroStrategy, Tether, and all public Bitcoin miners combined hold.
In conclusion, CryptoQuant’s CEO is optimistic about Bitcoin’s future price potential, attributing it to the continued inflow of spot ETFs. Additionally, the growing adoption of Bitcoin ETFs by major financial institutions further supports the positive outlook for Bitcoin’s price.
