Bitcoin’s path to $200K
Remember when talking about Bitcoin at $100,000 would get you those “sure, and unicorns are real” looks? Well, here we are! Even Federal Reserve Chair Jerome Powell is joining the party, recently calling Bitcoin “like gold, only digital.” Wonder what other “impossible” predictions we should reconsider? 🦄
What are the numbers telling us now?
While we can’t predict the future, we can look at some key metrics that traders use to gauge market temperature. One of the most trusted ones is the MVRV Z-Score—Bitcoin’s built-in reality check. It compares two key prices: the current market price and the “reality check” price (the average price at which bitcoins were last moved between wallets). When these prices drift too far apart (Z-Score above 7), it has historically signaled market euphoria. Right now, we’re at a modest 3.00—suggesting we’re not in the “irrational exuberance” territory that typically marks market peaks.
Here’s another interesting metric: Bitcoin’s average cost basis currently sits at $37,500 and has been climbing by about $4,000 monthly. If this trend continues, by early 2025, the average holder’s entry price could reach $50,000. Historical data shows that during peak cycles, Bitcoin’s price has reached 4-5 times this average cost basis—suggesting potential prices of $200,000+ if similar patterns play out. However, remember that past performance doesn’t guarantee future results!
