Bitcoin Price Projection: ETF Inflows May Propel BTC to $112K This Year, Predicts CryptoQuant

Bitcoin prices could reach staggering heights of $112,000 this year if the current trend of inflows related to spot exchange-traded funds (ETFs) persists, according to insights from on-chain data provider CryptoQuant. The CEO, Ki Young Ju, outlined this optimistic outlook on Sunday, highlighting the significant impact of ETF buying pressure on the cryptocurrency market.

Even in a "worst-case" scenario, Ki Young Ju suggests that Bitcoin prices could still climb to at least $55,000, representing a nearly 15% increase from current levels. These projections are based on the observed effect of ETF inflows on Bitcoin's market capitalization and a metric ratio historically indicative of whether prices are considered "overvalued" or "undervalued."

#Bitcoin could reach $112K this year driven by ETF inflows, worst-case $55K.https://t.co/HrkV3TU8Ul pic.twitter.com/jBn6HWpt9b

— Ki Young Ju (@ki_young_ju) February 11, 2024

Ki Young Ju explained, "Bitcoin's market has seen $9.5 billion in spot ETF inflows per month, potentially boosting the realized cap by $114 billion yearly." He further noted that even with outflows from the Grayscale Bitcoin Trust (GBTC), a rise of $76 billion could elevate the realized cap from $451 billion to an impressive range of $527 billion to $565 billion.

The CEO referenced a ratio tracking Bitcoin's market capitalization to realized capitalization—a measure of active tokens at their last traded price—as a potential indicator of a price top for Bitcoin, placing it between the $104,000 to $112,000 mark. This ratio would reach 3.9 at those price levels, historically signaling a potential price peak.

#Bitcoin market has seen $9.5B in spot ETF inflows per month, potentially boosting the realized cap by $114B yearly.

Even with $GBTC outflows, a $76B rise could elevate the realized cap from $451B to $527-565B. pic.twitter.com/b7iFCIbGVP — Ki Young Ju (@ki_young_ju) February 11, 2024

Since their launch nearly a month ago, spot Bitcoin ETFs have accumulated over 192,000 bitcoins in holdings as of Friday. Despite their relatively short time on the market, these funds have already attracted billions of dollars from investors seeking exposure to Bitcoin without directly purchasing and storing the cryptocurrency.

As the cryptocurrency market continues to evolve, investors and analysts closely monitor developments in ETF flows and their potential impact on Bitcoin's price trajectory. The projections provided by CryptoQuant offer insights into the potential future movements of the cryptocurrency market, albeit within the context of ongoing market dynamics and regulatory developments.

Also Read: Federal Reserve Worries About Cryptocurrency Stability