Experts from CryptoQuant are considering the possibility that the price of Bitcoin may reach $50,000 in early 2024, according to information from The Block.
Their forecast is based on the analysis of cryptocurrency holders' activity. In addition, data on transaction volume dynamics, market capitalization, and Metcalfe's Law in the context of cryptocurrencies are taken into account.
According to experts, the current cryptocurrency market is approaching an "overheated bull phase," historically accompanied by temporary pauses and corrections.
Specialists also note that over 88% of the total supply of available coins are in circulation, which may indicate potential selling pressure and, consequently, the possibility of short-term corrections.
According to expert observations, high levels of unrealized profits in the market's history have often coincided with local highs.
In addition, CryptoQuant reports a resurgence of Bitcoin whale activity, reminiscent of trends seen in 2021.
Analysts have also identified a reduction in the total supply of digital gold in circulation, which is associated with anticipation of major events in the market.
Renowned cryptocurrency industry veteran and CEO of Blockstream, Adam Back, predicted that the Bitcoin price would reach $100,000 before the upcoming halving scheduled for April 2024.
