A company called CryptoQuant, which offers on-chain data and analysis, has projected the price of Bitcoin (BTC) to rise sharply by 2024.
According to the company, if the inflows from spot Bitcoin exchange-traded funds (ETFs) continue at the current pace, the price of BTC could reach $112,000 this year. The firm added that the worst-case price for BTC is $55,000, still a 15% rise over its current value.
The forecast was based on how inflows affected the market cap of BTC and a ratio that gauges its valuation.
According to Ki Young Ju, CEO of CryptoQuant, spot Bitcoin ETF inflows into the Bitcoin market have reached $9.5 billion per month, potentially increasing the realized cap by $114 billion annually.
Since their debut almost a month ago, Bitcoin ETFs have amassed more than 192,000 bitcoins in holdings as of this Friday.
This indicates a sharp rise in interest in bitcoin, which may eventually lead to a price increase. Additionally, investors find spot ETFs more enticing than futures-based ETFs due to their lower fees and risks.
The price of Bitcoin (BTC) has just surpassed $50,000 for the first time since December 2021.
