Forecasting Bitcoin Value: Examining 3 Positive and 2 Negative Influencing Factors

Bitcoin (BTC) recently reached an all-time high of nearly $112,000 and despite a slight pullback, several factors suggest further growth potential. Over 30,000 BTC have been moved off exchanges in the past month, reducing immediate selling pressure. The supply of BTC on exchanges is at its lowest since 2018.

Inflows into Bitcoin ETFs are also growing; BlackRock’s iShares Bitcoin ETF has seen 33 consecutive days of inflows. Bitcoin's Market Value to Realized Value (MVRV) ratio indicates potential for price growth. However, there are concerns. Data shows that all BTC investors are currently in profit, a trend that in the past has been followed by a price fall. Additionally, the Fear & Greed Index indicates high levels of greed, which can signal a need for caution.