Bitcoin Eyes $100K: Analysts Point to Rising Demand and Liquidity Growth

Bitcoin rally to $93,400 could extend to $100K as analysts highlight surging demand, stablecoin inflows, and strong liquidity. While miner sell-offs loom, BTC remains undervalued by key metrics.

Bitcoin (BTC) continues its upward momentum, rallying more than 30% since the recent U.S. presidential election. Trading at $93,400, the cryptocurrency has set its sights on $100,000, buoyed by increasing demand and a surge in stablecoin liquidity. Market analytics platform CryptoQuant predicts that Bitcoin could reach this milestone in the coming weeks as key indicators suggest the asset is far from being overvalued.

Metrics Highlight BTC’s Undervaluation

One critical metric, the Market Value to Realized Value (MVRV) ratio, reveals that Bitcoin is still outside the overvalued zone, despite its recent 30% price increase. The MVRV ratio compares BTC’s current market value to its realized value, providing insight into whether the asset is overpriced.

According to CryptoQuant’s weekly report, Bitcoin’s “Trader On-chain realized max band” is another indicator that supports the $100,000 prediction. This metric has historically aligned with major price surges, such as BTC’s rally to $70,000 in March 2024.

Rising Demand Fuels Optimism

Demand for Bitcoin is surging, driven by renewed interest from U.S. investors. Following the presidential election, the Coinbase Bitcoin price premium turned positive, signaling heightened demand. The return of U.S.-based investors has further bolstered BTC’s apparent demand, which has been growing since October.

Stablecoin liquidity is another driver of Bitcoin’s price surge. Tether (USDT), the largest stablecoin by market cap, has seen an increase of $5 billion in the last two months. Since November 5, over $3.2 billion worth of USDT has flowed into exchanges, marking the largest daily net inflow since November 2021.

Miner Sell-Offs Pose a Minor Risk

While the market outlook remains bullish, analysts warn of potential selling pressure as miners begin to liquidate some of their holdings. Miners with balances between 100 and 1,000 BTC have sold approximately 2,000 BTC since the election. Although this is a small portion of total holdings, further sell-offs could increase supply and dampen price growth.

Liquidity Signals Continued Growth

CryptoQuant emphasizes that stablecoin inflows into exchanges are essential for sustaining Bitcoin’s rally. With liquidity improving, Bitcoin appears well-positioned for further gains, potentially surpassing the $100,000 mark in the coming weeks.

Conclusion

As Bitcoin approaches the psychological $100,000 threshold, a mix of strong demand, liquidity growth, and key undervaluation metrics suggests that the cryptocurrency’s rally has more room to run. While miner sell-offs may introduce short-term volatility, the broader market sentiment remains bullish, with analysts pointing to a historic opportunity for BTC.

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