Despite Bitcoin’s recent dip from the $100,000 mark, CryptoQuant analysts remain optimistic, predicting that the cryptocurrency still has significant room to grow. According to a recent report shared with CoinDesk, Bitcoin is expected to break through the $100,000 barrier and could even reach as high as $147,000 before the market cycle peaks.
CryptoQuant’s Profit and Loss (P&L) index, which uses a variety of on-chain data metrics to assess the current valuation of Bitcoin, shows that the cryptocurrency is firmly in a bull market. However, it has not yet reached the overbought levels observed during previous market highs, such as in 2021, 2017, and 2013. The firm’s Bull-Bear Market Cycle Indicator also indicates that Bitcoin is still in the early stages of a rally, with the market nowhere near the overinflated levels typically seen at the tops of market cycles.
One of the key signs of continued upward momentum is the relatively low involvement from retail investors. Data from CryptoQuant shows that retail investors have been offloading Bitcoin, with 41,000 BTC sold since October. In contrast, large institutional investors have been increasing their holdings, adding 130,000 BTC during the same period. This shift in investor behavior suggests that the market is being driven by long-term institutional investors rather than speculative retail traders, which is typically a positive signal for continued growth.
Another important factor is Bitcoin’s realized price, which currently sits between $36,000 and $37,000. Historically, Bitcoin tends to peak when its price reaches approximately four times its realized price. This would put the upper band at around $147,000, which is consistent with CryptoQuant’s prediction that Bitcoin could rise to this level before the cycle concludes.
Furthermore, CryptoQuant points out that the lack of aggressive buying from new investors, those who have held Bitcoin for less than six months, suggests that the market is not yet nearing a top. In previous bull markets, new investors rushed in and held large amounts of Bitcoin at market highs, signaling a potential reversal. Currently, new investors only hold about 50% of the total value of Bitcoin, much lower than the 80%-90% seen during previous market peaks.
Alongside CryptoQuant’s analysis, other industry experts share a similarly bullish outlook for Bitcoin. Galaxy Research has also predicted that Bitcoin will likely reach $100,000 in the near term, citing factors such as growing institutional adoption and the potential for Bitcoin to become a reserve asset for nation-states.
While Bitcoin has experienced a minor pullback, the overall sentiment remains highly positive. Analysts believe that the cryptocurrency is poised for further growth, with the potential to reach new all-time highs in the coming months.
