Bitcoin has been stagnating in price for several weeks. However, according to an analyst from CryptoQuant, a cryptocurrency analysis company, the 100,000 price target for Bitcoin is still far from the minds of investors.
The analyst used a metric called Realized Value, which measures the real wealth of the Bitcoin market for all groups of unspent transaction outputs (UTXOs). This metric reflects the actual value of Bitcoin in circulation rather than the speculative value based on market price.
The analyst compared Realized Value to the Market Cap, which is the total value of all Bitcoins in existence based on the current price. He found that the ratio between Realized Value and Market Value decreases with each price cycle, showing that the price increase is not accompanied by a proportional increase in the actual wealth of the Bitcoin market.
The analyst explained that the most influential factor in increasing Realized Value is the presence of new investors and the growth of their capital in the Bitcoin market. However, with the 99% growth in Bitcoin price over the past nine months, he observed that only 1.5% has been added to the Realized value of Bitcoin. According to the analyst, this shows that price performance in BTC is not suitable for transferring wealth to new investors and increasing the value of investors' money.
Therefore, the analyst concluded that despite the current situation, the 100,000 price target for Bitcoin is still unattainable for most investors. He suggested that more adoption and innovation is needed to increase Realized Value and make Bitcoin more attractive and valuable.
*Not investment advice.
