Bitcoin’s Growth Potential: Analyst Predicts Cycle Peak Not Yet Reached Amid Rising ETF Interest

According to a recent report from COINOTAG News dated January 16th, analysts at 21Shares identify several crucial on-chain metrics suggesting that Bitcoin has yet to achieve its cycle peak, indicating potential for further price appreciation. Unlike previous cycles, the anticipated rollout of Bitcoin ETFs in early 2024, alongside a surge in institutional engagement, may be reshaping traditional market behaviors. The current MVRV ratio for Bitcoin stands between 2.5 and 3, potentially signaling a local peak; however, it remains well below the critical threshold of 7, which would indicate a significant cycle top. A breach of the $200,000 mark is essential for this ratio to reach its maximum. Presently, with Bitcoin trading around $100,000, unrealized gains have been oscillating between 0.5 and 0.75. The analyst notes that only upon surpassing 0.75 can a market peak be inferred. Lastly, when Bitcoin reached its all-time high in mid-December, the sell-side risk ratio for long-term holders was approximately 0.4%, with analysts suggesting that a reading above 0.8% would signal an overheated market.