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Breaking News: CLARITY Act Heading To Senate Vote April 14–20 As Lawmakers Strike Stablecoin Deal

Is $135,000 Bitcoin’s Current Ceiling? This Model Says So

Keshav Verma
Keshav Verma
Last Updated: November 19, 2024 3:30 am
2 mins read
Bitcoin

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The CryptoQuant founder has shared a model for Bitcoin that suggests the cryptocurrency’s maximum price could lie around $135,000 right now.

Bitcoin Model Established On Realized Cap Could Reveal Price Ceiling & Floor

In a new post on X, CryptoQuant founder and CEO Ki Young Ju has discussed about a BTC pricing model that’s based on the Realized Cap. The “Realized Cap” here refers to an on-chain valuation model for Bitcoin that assumes the ‘real’ value of any coin in circulation is the price at which it was last transacted on the blockchain.

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For any token, its last transfer is likely to represent the last instance of it changing hands, so the price at its time could be considered as the token’s current cost basis. As such, the Realized Cap is a sum of the cost basis of all coins on the network.

Put another way, the Realized Cap measures the total amount of capital that the holders of the cryptocurrency as a whole have invested into it. A new metric can be derived from this indicator by dividing it by the total circulating supply, representing the cost basis for the average token or investor on the chain.

This indicator is known as the Realized Price. In the context of the current topic, the Realized Price itself isn’t of interest, but its two multipliers are: 3.9x and 0.75x. Below is the chart shared by Young Ju that shows the trend in these two multipliers of the Realized Price over the history of Bitcoin.

Bitcoin Realized Cap Model
Looks like the asset is currently a notable distance above the bottom line | Source: @ki_young_ju on X

In the graph, the CryptoQuant founder has marked the 3.9x multiplier of the Realized Price as BTC’s “ceiling price.” Similarly, the 0.75x multiplier represents the “floor price.” An inspection of the trend in the indicator during the past cycles reveals why the analyst has chosen to do so. It turns out that the asset has generally topped at or slightly above the 3.9x multiplier, while it has reached bottoms at or slightly under the 0.75x multiplier.

At present, the ceiling price for the asset is sitting at a value of around $135,741, while the floor price at $26,104. Bitcoin is much higher than the latter right now, but there is also an appreciable distance to the former.

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This means that at the current amount of capital invested into the cryptocurrency, it still has room for growth, at least going by the pattern observed throughout history.

Naturally, the ceiling price isn’t something that’s certain to remain where it is now for the rest of the bull run, since any further fresh capital inflows into the asset would raise it. But for now, under $136,000 is looking like Bitcoin’s upper limit.

BTC Price

The Bitcoin rally has hit a pause button recently as the coin’s value is still trading around $90,000 right now.

Bitcoin Price Chart
The price of the asset appears to have been moving sideways recently | Source: BTCUSDT on TradingView
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

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Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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