- Driven by optimism about a Trump presidency, Bitcoin continues to reach new highs.
- Analysts suggest that despite the recent excitement the asset is still far from this cycle’s peak.
- Several analysts suggest that Bitcoin’s price will be in the healthy six-figure range soon.
By all standards, Bitcoin, the largest crypto asset by market capitalization, has had an impressive year, breaking high after high. In the latest instance, the asset has surged to new highs fueled by optimism that a Donald Trump presidency will be supportive of crypto assets. Despite this run of form, experts argue that the asset could only just be warming up.
Bitcoin Still Just Starting Out After $76K?
Driven by optimism over a Trump presidency, Bitcoin continues to clinch new highs. Over the past 24 hours, the asset has clinched fresh highs in quick succession, first breaking above the $75,000 price point and a few hours later above the $76,000 price point.
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Despite the recent rally, leading crypto research platform CryptoQuant suggests that the asset may still have significant room for further growth, citing the MVRV and the ratio of the realized price to the purchase cost of traders.
The MVRV is a measure of a coin’s market value to its realized value, used to gauge whether it is overvalued. Currently, at about 2.26, CryptoQuant argues that the Bitcoin market is not overheated and far from peak levels. For context, an asset is believed to be in overvalued territory if its MVRV is above 3.7.
At the same time, CryptoQuant argued that Bitcoin’s price remained close to the purchasing cost for traders, reducing potential selling pressure.
So how far can Bitcoin go in this current bull market phase?
Bitcoin Aiming for Six Figures
While market top projections vary, analysts have been clear about one thing in recent months: they expect Bitcoinโs price to hit a healthy six-figure price in this bull market driven by institutional flows, macroeconomic tailwinds, and political factors. Expressing these views in a note to investors on Wednesday, November 6, Bitwise CIO Matt Hougan set a target of $200,000 per Bitcoin by 2025.
โIโve never been more bullish than I am right now,โ the analyst wrote.
Echoing Hougan’s sentiments, in a conversation with DailyCoin, Standard Chartered’s Global Head of Digital Asset Research, Geoff Kendrick, also predicted that Bitcoin will reach the $200,000 price point by 2025. He anticipates that ETFs will have a similar effect on the asset as they did with gold.
โI forecast BTC to $200k by end of 2025. At that level I think it goes sideways rather than โtopping outโ as I think that is reasonable fair value,โ he stressed. โAt 200k BTC will be up 4.3X since before the ETFs. Gold did the same during its ETF build out.โ
Similarly, speaking to DailyCoin, CoinSharesโ Head of Research, James Butterfill, noted that while predicting the timing was hard, a six-figure asking price for Bitcoin now seemed more likely in the near term.
โTiming of these sorts of things is always hard. But now we have a much more crypto-friendly political administration in the US, the 6 figure level is much more achievable in the short-medium term,โ he asserted.
At the time of writing, however, Bitcoin is trading just below the $75,000 price point after shedding some of its earlier gains, likely due to profit-taking from traders ahead of the Federal Reserve’s interest rate decision.
On the Flipside
- Despite having more room to go to the upside, Bitcoin could still face short-term corrections.
- Analystsโ predictions will likely change if the macroeconomic picture also changes.
Why This Matters
CryptoQuantโs analysis suggests that it is not too late for investors to get into Bitcoin’s current bull market cycle.
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