Bitcoin still not overpowered, could hit $100k amid strong demand: CryptoQuant

Despite bitcoin's (BTC) incredible rise to $93,400 in the past few days, analysts at market analysis platform CryptoQuant say the cryptocurrency is still not overvalued and could be the next victim of the $100,000 range.

According to a weekly report, Trader On-chain's Max Band suggests that BTC may break the $100,000 target in the coming weeks, with growing demand and a stable coin trading in millions daily. Counts are increasing. This high band was reached in March when BTC topped $70,000 for the first time.

BTC continues $100k.

One metric that shows BTC is not overvalued is the Market Value to Real Value (MVRV) ratio. Despite bitcoin's 30% rally since Donald Trump won the US presidential election, this indicator is still out of bullish territory.

CryptoQuant's prediction that BTC could breach $100,000 next is confirmed by the surge in demand. The apparent demand for Bitcoin is currently expanding, which indicates that new investors are invading the market.

Although the apparent demand has been positive since the beginning of October, the demand for BTC returned in early November after the presidential election. This is reflected in Coinbase Bitcoin's price premium, which turned positive again after Trump's victory.

Miners are starting to sell.

Statcoins market value is growing as demand expands, and cryptocurrencies are increasingly added to exchanges. CryptoQuant states that the market can only see a sustained BTC rally if liquidity starts to improve and that is the market condition.

Tether's (USDT) market cap has increased by $5 billion in the past two months, with more than $3.2 billion of tokens entering crypto exchanges. Starting with the November 5 US presidential election. CryptoQuant analysts say this is the largest daily net inflow into USDT. Exchange from November 2021

The addition of a stable coin increases the possibility of higher crypto prices, analysts note that the market may witness less selling pressure as large miners seek to make some profits. So far, miners with a scale of 100 to 1,000 BTC have reduced their holdings to at least 2,000 BTC, so the amount of assets sold is still small; However, CryptoQuant says it is important to keep an eye on these market participants as the supply may increase soon.