Bitcoin Still Not Overvalued, Could Reach $100,000 Amid Strong Demand – CryptoQuant

Despite bitcoin’s (BTC) remarkable rise to $93,400 over the past few days, analysts at market analysis platform CryptoQuant say the cryptocurrency is still not overvalued and the $100,000 region could be next victim

According to a weekly report, Trader On-chain noted that the top band suggests that BTC could crush the $100,000 target in the coming weeks as demand grows and stablecoin liquidity continues to add millions daily. BTC reached this high band in March when it broke above $70,000 for the first time.

BTC to crush $100,000 Next

One metric that shows that BTC is not overvalued is the Market Value to Realized Value (MVRV) ratio. This indicator is still out of overvalued territory despite bitcoin’s 30% recovery since Donald Trump won the US presidential election.

CryptoQuant’s prediction that BTC could crush $100,000 next is borne out by increased demand. The apparent demand for Bitcoin is currently expanding, indicating that new investors are flooding the market.

Although apparent demand has been positive since early October, demand for BTC from US investors returned in early November after the presidential election. This is seen in the Coinbase Bitcoin price premium, which turned positive again after Trump’s victory.

Miners start selling

As apparent demand continues to expand, the market capitalization of stablecoins is growing and cryptocurrencies are increasingly being introduced to exchanges. CryptoQuant has also maintained that the market can only see a sustained rise in BTC if liquidity starts to improve, and that is the state of the market.

The market capitalization of Tether (USDT) has increased by $5 billion in the past two months, with more than 3.2 billion tokens flowing to crypto exchanges since the November 5 US presidential election. CryptoQuant analysts say this is the largest daily net flow of USDT to exchanges since November 2021

While increased liquidity in stablecoins raises the possibility of higher cryptocurrency prices, analysts note that the market could witness minor selling pressure as major miners look to take some profits. So far, miners with a balance of 100-1000 BTC have reduced their holdings by at least 2000 BTC, so the amount of assets sold is still small; however, CryptoQuant says it’s crucial to keep monitoring these market participants, as supply could increase soon.

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