Bitcoin ETFs Flows Could Propel BTC Prices to $112K This Year: CryptoQuant

Bitcoin prices have the potential to reach $112,000 this year, thanks to the buying pressure generated by spot exchange-traded funds (ETFs), according to CryptoQuant. Even in the worst-case scenario, Bitcoin could still rise to at least $55,000, representing a 15% increase from its current levels. On-chain data provider CryptoQuant’s CEO, Ki Young Ju, based these predictions on the impact of ETF inflows on Bitcoin’s market capitalization and a metric ratio historically indicating overvaluation or undervaluation. With monthly spot ETF inflows amounting to $9.5 billion, the realized Bitcoin market cap could potentially rise by $114 billion annually. Despite potential outflows from the Grayscale Bitcoin Trust (GBTC), the realized cap could see a rise of $76 billion, reaching $527-565 billion. Ki also referred to the ratio of Bitcoin’s market capitalization to realized capitalization, pointing out that a ratio of 3.9 at prices between $104,000 and $112,000 has historically signaled a price top. Since their launch a month ago, spot Bitcoin ETFs have already accumulated over 192,000 bitcoin in holdings. These funds have attracted substantial investments from individuals seeking indirect exposure to Bitcoin, without the need to personally buy and store the cryptocurrency.