According to Glassnode CTO 10X, Bitcoin price will be based on the current price
Rafael Schultze-Kraft of Glassnode has shared several on-chain metrics which, in his opinion, indicate that the Bitcoin price will comfortably reach six-digit price thresholds in the future.
The CTO of data aggregator Glassnode, Rafael Schultze-Kraft, has described a number of Bitcoin market indicators also the Bitcoin Future App as „insanely bullish“ and predicted that the Bitcoin price will increase by more than ten times.
On 9 December, Schultze-Kraft tweeted a thread that provides the basis for his ultra-optimistic prediction. In it he presents six „of the most important on-chain market indicators, which are currently hovering at the same level as at the beginning of 2017“.
1/ Where are we in the #Bitcoin market cycle?
A look at some of the most important on-chain market indicators.
TLDR: Insanely bullish, most metrics are far from the top. If things develop anything like 2017, we could see more than 10x $BTC from here.
A THREAD 👇 pic.twitter.com/d1jU0h5fxA
– Rafael Schultze-Kraft (@n3ocortex) December 8, 2020
5 out of 6 indicators see the Bitcoin price at $200,000
Any of Schultze-Kraft’s predictions (or estimates) see the Bitcoin price entering the six-digit range, with all metrics suggesting that the price per BTC will exceed $200,000.
For each of the indicators, Schultze-Kraft has measured the gains that have occurred as the metric has moved from a similar position in 2017 to an all-time high later this year. He then multiplied the current Bitcoin price by the same percentage increase.
Schultze-Kraft noted that Bitcoin’s Net Unrealised Profit/Loss, or NUPL, has climbed back to 78% of 2017 ATH. The NUPL is „the difference between unrealised gains and losses based on the point in time when the coins last moved along the chain“. The Bitcoin price, when it was at the same level according to the NUPL, rose 1,400% to its peak. If the scenario were to repeat to a similar extent, Kraft estimates that the Bitcoin price could reach $286,000 in this cycle.
Bitcoin price in the context of NUPL
BTC’s market cap to thermocap ratio is currently only a quarter of the 2017 high. Thermocap assesses Bitcoin’s price premium in relation to Miner’s expenditure. In 2017, the Bitcoin price rose 625% as the ratio rose to an all-time high, indicating that the Bitcoin price could reach the $138,000 mark in the future.