Bitcoin Still Not Overvalued, Could Reach $100,000 Amid High Demand: CryptoQuant

Despite bitcoin’s (BTC) remarkable rise to $93,400 in recent days, analysts at market analysis platform CryptoQuant say the cryptocurrency is still not overvalued and the $100,000 zone could be its next victim.

According to a weekly report, the maximum band achieved by Trader On-chain suggests that BTC could surpass the $100,000 target in the coming weeks, as demand increases and stable coin liquidity continues to increase by several million dollars every day. BTC reached this maximum band in March when it surpassed $70,000 for the first time.

BTC to Crush $100,000 Next

One metric that shows BTC is not overvalued is the market value to realized value ratio (MVRV). This indicator is still outside of overvalued territory despite bitcoin’s 30% rise since Donald Trump’s victory in the US presidential election.

CryptoQuant’s prediction that BTC could next surpass $100,000 is supported by the strong growth in 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 can be seen in the Coinbase Bitcoin price premium, which turned positive again after Trump’s victory.

Miners start selling

As apparent demand continues to grow, the market capitalization of stablecoins increases and cryptocurrencies increasingly find their way into exchanges. CryptoQuant also argued 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 capitalization of Tether (USDT) has increased by $5 billion over the past two months, with over $3.2 billion worth of tokens flowing into 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 the increase in liquidity of stablecoins raises the possibility of higher cryptocurrency prices, analysts note that the market could see slight selling pressure as large miners look to make a profit. So far, miners with a balance of 100 to 1,000 BTC have reduced their holdings by at least 2,000 BTC, so the amount of assets sold is still small; However, CryptoQuant says it is crucial to continue monitoring these market participants as the supply could soon increase.