CryptoQuant: Bitcoin 2023 Price Rally Is Proof Crypto Would Revisit All-Time High Early Next Year

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Tolu Ajiboye
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Crypto trading data analyzer CryptoQuant recently weighed in on Bitcoin’s (BTC) price potential and appeal in 2023. In a media session, representatives from the crypto trading analyzer opined that more institutions could shore up on BTC later this year. The decentralized data provider’s reps also forecasted the prominent token returning to its previous record high by early 2024.

CryptoQuant Says Bitcoin 2023 Price Trajectory Is Up

In an interview with CryptoPotato, CryptoQuant Head of BD & 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 the bear market”. Furthermore, the CryptoQuant executive added that despite the ever-present possibility of corrections, institutional clients look to invest in BTC in Q3 and Q4. Speaking on such indications received from sophisticated crypto investor hopefuls, Brannan explained:

“These are from conversations that I’ve been having mainly with institutional allocators and also people who are fundraising core funds as well. They’ve been speaking with various institutions or high net worth individuals.”

However, the CryptoQuant business developer stressed that institutions would likely only invest in Bitcoin and crypto in the second half of the year. This way, prospective investors can be sure that BTC has escaped the bear cycle. In Brannan’s opinion, Bitcoin already appears to be in full-scale bullish mode. He also touched on the crypto’s price correlation to gold, its place in the market cycle, and its role in the crumbling US banking situation.

How US Banking Meltdown Has Driven Bitcoin Price Correlation to Gold Higher

Bitcoin is currently changing hands over $26K, a substantial appreciation from the $16,500 where it began the year. Several analysts and observers, including Brannan, believe the crypto’s rally is primarily due to the ongoing banking crisis. According to consensus opinion, investors have fled the mainstream financial landscape in droves and repurposed their investments toward crypto assets. An increasing number of investors have viewed crypto as ‘safe haven’ assets following the collapses of Silicon Valley Bank, Silvergate, and First Republic.

The development also sees a diminishing correlation between BTC and stocks and a surging correlation between crypto and gold. As of early April, the Bitcoin-to-gold correlation was 50%, surpassing the token’s 20% correlation to stocks. Furthermore, Bitcoin’s newfound risk-off asset status also reflects the popular digital currency’s increasing resilience to Federal Reserve interest rate hikes.

Although Bitcoin’s purported safe haven status seems unquestionable at the moment, Brannan sees the coin moving like a mixture of stocks and gold long-term-wise.

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 commendably when the fiat system stutters. Furthermore, the executive added that BTC’s status as a commodity in the US, instead of security, fuels its success.

Although Bitcoin’s infamous four-year-cycle bull and bear transitions based on its supply issuance schedule are well-documented, nailing the exact timing of highs and lows is tricky. However, Brannan believes there are some reliable indicators to identify bottoms. One such indicator is Market-Value to Realized-Value ratio (MVRV). This on-chain perspective divides an asset’s market capitalization by its realized capitalization.

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.