CryptoQuant’s business development executive Benjamin Brannan reveals on ‘favorable’ price optics of bitcoin in 2023.
Crypto trading data analyst CryptoQuant recently reported that Bitcoin (B T c) value potential and appeal in 2023. In a media session, representatives of crypto trading analyst opined that more institutions may be on edge on BTC later this year. A representative from the decentralized data provider also predicted the major coin to return to its previous all-time high in early 2024.
CryptoQuant Says Bitcoin 2023 Price Trajectory Is Up
in one Interview with Cryptopotato, BD and CryptoQuant head of strategy Benjamin Brannan suggested 2023 as a prime time to buy bitcoin. Brannan explained that the world’s largest crypto by market cap is essentially “out of the depths of a bear market”. Furthermore, the CryptoQuant executive said that despite the ever-present potential for a correction, institutional clients are looking to invest in BTC in Q3 and Q4. Speaking on such signals received from sophisticated crypto investor hopefuls, Brannan explained:
“These are from conversations I am having with primarily institutional allocators and people who are also raising seed money. They are talking with various institutions or high net worth individuals.
However, the CryptoQuant business developer insisted that institutions would only invest in bitcoin and crypto in the second half of the year. This way, potential investors can be sure that BTC has survived the bear cycle. In Brannan’s opinion, bitcoin already appears to be in full-scale bullish mode. He also touched on the correlation of crypto’s price to gold, its place in the market cycle, and its role in the crumbling state of US banking.
How the US banking meltdown drove bitcoin price correlation to gold highs
Bitcoin is currently changing hands at over $26K, a substantial appreciation from the $16,500 where it began the year. Many analysts and observers, including Brannon, believe that the rally of crypto is mainly due to the ongoing banking crisis. According to the consensus opinion, investors have fled the mainstream financial landscape and reoriented their investments to crypto assets. Following the collapses of Silicon Valley Bank, Silvergate and First Republic, a growing number of investors have viewed crypto as a ‘safe haven’ asset.
The development also sees a decreasing correlation between BTC and stocks, and an increasing correlation between crypto and gold. In early April, the bitcoin-to-gold correlation stood at 50%, surpassing the coin’s 20% correlation to stocks. Furthermore, bitcoin’s new risk-off asset status also reflects the growing resilience of the popular digital currency. federal Reserve Increase in interest rate.
While bitcoin’s so-called safe haven status appears undeniable at the moment, Brannon sees the coin moving like a long-term-wise mix of stocks and gold.
CryptoQuant Head of Marketing Ho Chan Chung also weighed in on the latest bitcoin price development. According to Chung, crypto is viewed as a commodity that performs admirably when the fiat system wobbles. Furthermore, the executive said that BTC’s status as a commodity in the US, rather than as a security, has fueled its success.
While bitcoin’s infamous four-year cycle of bull and bear transitions based on its supply release schedule is well documented, the exact timing of highs and lows is difficult to pin down. However, Brannan believes that there are few reliable indicators for identifying bottoms. One such indicator is the market-value to realized-value ratio (MVRV). This on-chain perspective divides the market capitalization of an asset by its realized capitalization.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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