Bitcoin Still Not Overvalued, Could Hit $100K Amid Strong Demand: CryptoQuant
The post Bitcoin Still Not Overvalued, Could Hit $100K Amid Strong Demand: CryptoQuant appeared on BitcoinEthereumNews.com.
Despite bitcoin’s (BTC) remarkable ascent to $93,400 over the last few days, analysts at the market analytics platform CryptoQuant say the cryptocurrency is still not overvalued and that the $100,000 region could be its next victim. According to a weekly report, the Trader On-chain realized max band suggests that BTC could crush the $100,000 target in the coming weeks as demand grows and stablecoin liquidity keeps rising by millions daily. BTC reached this max band in March when it rallied past $70,000 for the first time. BTC to Crush $100K Next One metric that shows BTC is not overvalued is the Market Value to Realized Value (MVRV) ratio. This indicator is still outside the overvalued territory despite bitcoin’s 30% rally since Donald Trump won the United States presidential election. CryptoQuant’s prediction that BTC could smash $100,000 next is substantiated by surging demand growth. Bitcoin Apparent demand is currently expanding, indicating that new investors are invading the market. Although apparent demand has been positive since early October, BTC demand from U.S. 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 Are Beginning to Sell As apparent demand continues expanding, the market cap of stablecoins is growing, and the cryptocurrencies are increasingly finding their way into exchanges. CryptoQuant has also maintained that the market can only see a sustained BTC rally if liquidity starts to improve, and that is the state of the market. The market cap of Tether (USDT) has increased by $5 billion in the last two months, with over $3.2 billion tokens flowing into crypto exchanges since the U.S. presidential election on November 5. CryptoQuant analysts say this is the largest daily net flow of USDT into exchanges since November 2021 While…
Filed under: News - @ November 17, 2024 11:18 am