Bitcoin Could Support Triple Market Cap as Price Hits $265,000: CryptoQuant CEO

CryptoQuant CEO suggests Bitcoin could sustain a price of $265,000, supported by network fundamentals supporting three times its previous cyclical top.

A recent analysis by Ki Young Ju, founder and CEO of CryptoQuant, compares the price of Bitcoin and the associated hash rate/market capitalization ratio, highlighting the cryptocurrency’s continued volatility and the resilience of its network. The market analyst believes that Bitcoin has the potential to sustain a price of US$265,000.

Bitcoin Price and Hash Rate Trends

According to the attached chart, the price of Bitcoin, represented by a gray line, showed significant volatility from July 2020 until early 2024. After a sharp rise to around $60,000 in April 2021, the price went through a series of falls and recoveries.

Bitcoin Hashrate Market Capitalization Rate | CriptoQuant

In early 2024, Bitcoins the price once again approached previous highs, suggesting a possible resurgence of investor interest and market activity.

In parallel with the price fluctuations, the hashrate/market capitalization ratio, represented in purple, showed a notable increase. This ratio, which assesses the growth of mining activity in relation to market capitalization, started at a low point in early 2020, but rose sharply alongside the rise in Bitcoin’s price until early 2021.

Sustained or increasing hashrate during periods of price stabilization or decline indicates increasing commitment from miners.

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An annotated horizontal line indicates that at the same price level as in previous cycles, the Bitcoin network now supports three times the hashrate, implying greater network security and investment in miners. In January 2024, both the price and the hashrate/market capitalization ratio were at an all-time high.

Changes to Bitcoin Mining Operations

This review comes at a crucial time as major crypto mining companies like Hut 8 report significant operational changes.

Hut 8, a large North American crypto mining company, with experience a 36% reduction in Bitcoin production in April due to the relocation of over 25,000 mining machines. Despite this temporary decline, the strategic relocation suggests a long-term vision to optimize mining operations.

Additionally, Marathon Digital Holdings, another key player in the sector, is expanding its operations to Kenya. According to a local reportMarathon has begun consultations with the National Treasury and the Ministry of Energy to discuss power requirements for cryptocurrency mining.

The technical end

From a technical perspective, current market analysis shows that Bitcoin trades at around $62,150, with 24-hour trading volume significantly impacting its market value.

Bitcoin 4H Chart

Technical indicators such as Bollinger Bands and the Relative Strength Index on trading charts suggest moderate volatility with potential for future price movements. Observed trading patterns indicate that although the market faces certain levels of resistance, there is potential for recovery, as seen in past fluctuations.

Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to do thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.

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