Benjamin Brannan, Executive Director of Business Development at CryptoQuant, offered the ‘favorite’ price optics on Bitcoin in 2023.
Cryptocurrency trading data analyst CryptoQuant recently weighed in on Bitcoin (BTC) price potential and attractiveness in 2023. In a briefing, representatives from the cryptocurrency trading analyst saw that more institutions could support BTC later this year. Representatives of the decentralized data provider also predicted that the token would return to a record high by early 2024.
CryptoQuant Says Bitcoin Price Path 2023 Is High
in Interview with CryptoPotatoCryptoQuant BD Head of Strategy and Strategy Benjamin Brannan has suggested that 2023 will be a prime time to buy Bitcoin. Brannan explained that the world’s largest cryptocurrency by market capitalization is essentially “out of the depths of the bear market.” Furthermore, the CryptoQuant executive added that despite the ever-present potential for corrections, institutional clients are looking to invest in BTC in the third and fourth quarters. Speaking about these pointers received from sophisticated crypto investors, Brannan explained:
“These are from conversations that I’ve had mainly with institutional allotments and also people who raise seed money as well. They’ve been talking with different institutions or high net worth individuals.”
However, business developer CryptoQuant confirmed that only institutions are likely to invest in Bitcoin and cryptocurrencies in the second half of the year. In this way, potential investors can be sure that Bitcoin has escaped the bear cycle. In Brannan’s opinion, it appears that Bitcoin is already in a broad bullish mode. He also touched on the correlation of the cryptocurrency price with gold, its place in the market cycle, and its role in the deteriorating banking situation in the United States.
How the US Banking Collapse Increased Bitcoin’s Correlation with Gold
Bitcoin is currently changing hands over $26K, which is a significant uptick from $16,500 where it started the year. Many analysts and observers, including Brannan, believe that the rise of the cryptocurrency is mainly due to the ongoing banking crisis. According to the consensus opinion, investors have fled the mainstream financial landscape in droves and redirected their investments towards crypto assets. An increasing number of investors view cryptocurrencies as “safe haven” assets in the wake of the collapse of Silicon Valley Bank, Silvergate and the First Republic.
The development also sees a paradoxical correlation between BTC and stocks and a growing correlation between cryptocurrency and gold. As of early April, the correlation between bitcoin and gold was 50%, surpassing the token’s 20% correlation with stocks. Moreover, the state of bitcoin’s newfound asset and risk also reflects the growing resilience of the popular digital currency in the face of rising federal interest rates.
Although Bitcoin’s purported safe-haven status seems unquestionable at the moment, Brannan sees the currency moving as a mixture of stocks and gold over the long term.
CryptoQuant’s Chief Marketing Officer, Hu Chan Zhong, also focused on the latest bitcoin price developments. According to Chung, cryptocurrency is seen as a commodity that performs commendably when the fiat system crashes. Moreover, the CEO added that it is BTC’s status as a commodity in the US, rather than a security, that underpins its success.
Although Bitcoin’s infamous four-year transitions into bulls and bears based on the supply issuance schedule are well documented, pinpointing the exact timing of the highs and lows is difficult. However, Brannan believes there are some reliable indicators for identifying bottoms. One such indicator is the market capitalization to realization value (MVRV) ratio. This on-chain perspective divides the market value of an asset by its realized capitalization.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify cryptocurrency stories down to the bare essentials so that anyone anywhere can understand without much background knowledge. When not in the depths of cryptocurrency stories, Tolo enjoys music, loves to sing, and is a movie lover.