Bitcoin has jumped over 30% since the recent U.S. presidential election. Many believe that high demand and growing stablecoin liquidity might push the cryptocurrency above $100,000 soon. Even though Bitcoin reached $93,400 in the past few days, experts say it’s not overvalued yet. Analysts at CryptoQuant think the $100,000 mark could be next as more people show interest and stablecoins pour into the market.
One way to see if Bitcoin is overvalued is by looking at the Market Value to Realized Value (MVRV) ratio. Right now, this ratio suggests that Bitcoin isn’t in the overvalued zone, even after its 30% rise since Donald Trump won the election. This means there might be room for the price to grow more.
The demand for Bitcoin is increasing. New investors are coming into the market, which is shown by the apparent demand expanding. After the election, demand from U.S. investors picked up again. This is visible in the Coinbase Bitcoin price premium, which turned positive following Trump’s victory.
At the same time, miners are starting to sell some of their Bitcoin. As the demand keeps growing, stablecoins like Tether (USDT) are also increasing in market cap. In the last two months, Tether’s market cap has grown by $5 billion. Since November 5, over $3.2 billion worth of USDT has moved into crypto exchanges. This is the largest daily net flow of USDT into exchanges since November 2021.
While more stablecoin liquidity can lead to higher crypto prices, there might be some selling pressure because big miners are taking profits. So far, miners who hold between 100 and 1,000 BTC have sold at least 2,000 BTC. Although this amount is small, it’s important to watch these miners because they could increase the supply soon.
On another note, Ethereum (ETH) has seen a recent price drop. Despite this, Ethereum bulls seem ready for a new rally. Today, ETH is priced at $3,130, down from its peak of $3,434 on November 12. Investors believe this pullback is only temporary.
Data from Glassnode shows that the total Ethereum exchange inflow is 249,245 ETH, worth about $780 million. Exchange inflow means how much ETH is being sent to exchanges. A decrease in this number suggests that holders aren’t looking to sell right now. If this trend continues, Ethereum might not fall below $3,000 in the near future.
Investor sentiment plays a big role in price movements. When there are more bulls, it means more people are buying. If there are more bears, it means more people are selling. In the past 24 hours, Ethereum bulls have outnumbered bears. This could mean that ETH’s price might go above $3,130 soon.
Overall, the cryptocurrency market is showing signs of growth. High demand and rising stablecoin liquidity are important factors. New investors are entering the market, and existing investors are holding onto their assets. While miners are starting to sell some Bitcoin, the amount isn’t enough to cause major concern yet. It’s important to keep an eye on these trends to see where the market might go next.
