According to CryptoQuant, a crypto market analytics firm, Bitcoin is out of the depths of the bear market and the bull market appears to have returned. Despite corrections always being on the table, the Head of BD & Strategy, Benjamin Brannan, has received word from institutional clients who intend to invest in Bitcoin and crypto in Q3 and Q4 2023. He stated that institutions are waiting for confirmation that Bitcoin has exited the bear market, which is looking to be the case.
Bitcoin Considered a Safe Haven Asset Amid US Banking Crisis
Bitcoin has rapidly appreciated to over $27,000 in response to this year’s US banking crisis, with the likes of Silicon Valley Bank, Silvergate, First Republic, and other banking institutions falling between the cracks. This has resulted in a falling correlation between Bitcoin and stocks, and a rising correlation with gold. Brannan stated that the “rush to Bitcoin” was a sign that the market was currently viewing Bitcoin as a safe haven asset.
Bitcoin Likely Won’t Retest Its $16,000 Lows
CryptoQuant tracks Market-Value to Realized-Value ratio (MVRV) to identify bottoms from an on-chain perspective. According to Brannan, when coins are being held at a very high unrealized loss, it is a good time to buy; if a lot of participants are holding their coins at unrealized gains, then a lot of people are looking to sell, and realize some profits. Brannan and CryptoQuant’s Head of Marketing, Ho Chan Chung, agreed that Bitcoin likely won’t retest its $16,000 lows. They added that Bitcoin may even surpass its previous all-time high by Q2 2024, right around the time of the next Bitcoin halving.
In the long term, Brannan predicts Bitcoin could realistically reach $1 million by 2030. He also thinks the tightening regulatory situation in the United States could serve to benefit the asset, as he thinks Bitcoin is difficult to regulate compared to “crypto”.