Bitcoin (BTC) Still Just Starting Out After $76K?

Driven by optimism over a Trump presidency, Bitcoin continues to clinch new highs.

Bitcoin price hit a new all-time high on Friday, continuing its relentless surge in response to the US election outcome.

What Happened: After surging past the $75,000 mark for the first time on Thursday, BTC scaled to a new high of $76,134.09 on Friday, data from CoinMarketCap showed.

The world’s apex cryptocurrency later pared some gains and was last seen trading 0.04% lower at $74,908.6.

Despite the recent pullback, Bitcoin price is up a staggering 140% year-to-date from January 1 opener of $31,188.

Despite the recent astronomical rally, CryptoQuant said Friday that BTC could still be poised for further gains.

The crypto research platform cited the MVRV and the ratio of the realized price to the purchase cost of traders as suggestive of the possibility.

Bitcoin’s new ATH doesn’t mean it’s overvalued relative to its cost basis.

The MVRV ratio shows $BTC is still far from peak levels.

The price is also close to the purchase cost of traders, indicating it’s not overheated.

This hints at a potential for further growth. pic.twitter.com/xeeDdipN9O

The MVRV is a measure of a coin’s market value to its realized value, used to gauge whether it is overvalued. Currently, at about 2.26, CryptoQuant argues that the Bitcoin market is not overheated and far from peak levels. For context, an asset is believed to be in overvalued territory if its MVRV is above 3.7.

At the same time, the platform said that Bitcoin price remained close to the purchasing cost for traders, reducing potential selling pressure.

Insiders Expect Six-Figure Bitcoin Price This Year: Bitwise CIO Sets Target At $200K

While market top projections vary, analysts have been clear about one thing in recent months: they expect Bitcoin’s price to hit a healthy six-figure price in this bull market driven by institutional flows, macroeconomic tailwinds, and political factors.

Expressing these views in a note to investors on Wednesday, Bitwise CIO Matt Hougan set a target of $200,000 per Bitcoin by 2025.

“We believe the macroeconomic backdrop will continue to support crypto markets for the next several years, driving a wave of new capital into the digital asset ecosystem.”

Hougan added that Bitcoin’s price could continue to rise even after the next market top, as was the case in the 2017 bull market.

“After the last bull market top in December 2017, Bitcoin’s price fell by 84% over the next 15 months. But then, it began to recover in early 2019, and by April 2021, the price had risen back to its previous all-time high.”

Hougan’s projection comes as the crypto market has surged to new highs in 2024, fueled by the entry of major institutions like BlackRock (NYSE:BLK) and Goldman Sachs (NYSE:GS).