Bitcoin Demand Surges, Potential Rally to $200K by Year-End
Bitcoin demand has increased at a rate of approximately 62,000 BTC per month since July, indicating potential for a late-year rally to over $200,000.
This growth in demand mirrors patterns seen in Q4 of 2020, 2021, and 2024 when prices experienced significant rises.
The increase is largely driven by whales and ETFs. Large-holder balances are increasing at an annualized pace of 331,000 BTC, surpassing previous years' figures.
ETFs purchased 213,000 BTC in Q4 2024, marking a 71% increase in holdings, with potential for further allocation increases towards year-end.
A price breakout above the Trader’s Realized Price of $116,000 is crucial for transitioning into a "BULL" market phase, potentially reaching values between $160,000 to $200,000.
The Bull-Bear Market Cycle Indicator uses on-chain realized price metrics to determine market phases based on current bitcoin prices compared to average cost bases.
Current market conditions resemble those of October last year, with CryptoQuant’s Bull Score Index ranging between 40 and 50, nearing bullish territory.
Traders anticipate potential replication of 2024's Q4 pattern where Bitcoin surged from $70,000 to $100,000 as demand metrics strengthen.
