Bitcoin’s current bull run could continue for another 4x price increase, according to the Long-Term Holder MVRV metric, suggested Glassnode.
Simultaneously, the network’s activity keeps escalating as the non-zero and 0.01+ accounts have both reached new all-time highs.
Bitcoin to $250K and Beyond?
The primary cryptocurrency has been on a bull run in the past several months. After all, its price increased by roughly six-fold since early October to its recently-registered all-time high at $61,800.
Despite this impressive surge in a relatively short period, the analytics resource Glassnode indicated that the run could continue to well within a six-digit price territory.
According to the company, the Long-Term Holder Market Value/Realized Value metric, which takes into consideration only UTXOs with a lifespan of at least 155 days, is a “good indicator of bitcoin market tops.”
The metric is currently at ten, which is still beneath the red zone (above 20). During the previous bull cycle in 2017, BTC traded at $4,500 when the LTH MVRV was at a similar spot. From that point on, the asset price exploded by about 4.4x to its December 2017 peak at nearly $20,000.
Should a similar scenario occur now, bitcoin’s price would explode to over $250,000 per coin. Its market capitalization would be about $4.7 trillion – or more than two times larger than Apple’s.
Although these potential price tags sound quite optimistic as of now, it’s worth noting that numerous bitcoin advocates have recently predicted similar projections. Max Keiser, who was very accurate about his end-of-2020 forecast, has repeatedly said that $220,000 per coin is “in play” in 2021.
The popular S2FX model, the upgraded version of the stock-to-flow, sees $288,000 this year, while its creator recently doubled-down on his belief.
Network Activity to New ATHs
Apart from the price reaching new highs, the BTC network activity has been exponentially increasing in the past several months as well.
The number of non-zero bitcoin addresses, which saw a sharp drop during the year-long bear market in 2018, has reached a new all-time high of over 36,700,000.
Additionally, other accounts, holding at least 0.01 bitcoins (worth roughly $590 as of today’s prices), have gone for a new record as well. Further Glassnode data indicated that such wallets are now more than 8,900,000.