Max Keiser, who is popular for making BTC predictions based on hash-rate adjustments has a new target for Bitcoin price this year. Just as Bitcoin price hits a new all-time high above $35,500 a few hours back, industry veterans have started making fresh predictions for BTC price in 2021.
Last month in December 2020, the Bitcoin network registered its highest every hash-rate at 136 exahashes/second. As of writing this article, the BTC hash-rate has topped 148 exahashes/second as per info on Blockchain.com. As per the chart provided by the platform, the Bitcoin hash-rate has surged 12.% just over the last week.
Keiser, who predicted $36,000 BTC price based on hash-rate adjustments notes that BTC price will hit $220,000 by the end of this year. In his latest tweet, he writes:
“$36,000 BTC was the hashrate-adjusted-price I flagged last summer (Hashrate leads price) With HR hitting new highs; 2021 target of $220,000 comes into focus”.
The surging hash-rate shows the growing fundamental strength of the Bitcoin blockchain network. Let’s look at some of the other on-chain metrics suggesting a bullish scenario for Bitcoin price. Interestingly, Keiser’s prediction comes a day after JPMorgan gave a long-term target of $146,000.
On-Chain Metrics: Bull Case Scenario for Bitcoin Price
On-chain data provider Glassnode notes that Bitcoin’s current MVRV Z-Score is around the levels seen during July 2017, after which it surged 10X in the next six months hitting its 2017-high of $20,000. Thus, as per the same metrics, Keiser’s $220,000 price prediction for BTC doesn’t look far-fetched.
#Bitcoin MVRV Z-Score has seen a sharp increase to values above 5.
It is now at the levels of the main bull market of 2017.
Note that in 2017, $BTC made another 10x over the course of 6 months.
Chart: https://t.co/LjSh412tnv pic.twitter.com/Jh1caGYoZY
— glassnode (@glassnode) January 6, 2021
As stated by Glassnode: “The MVRV-Z Score is used to assess when an asset is overvalued or undervalued relative to its “fair value”, as underlined by the deviation between its market cap and realized cap“.
On the other hand, Bitcoin’s bull case scenario refuses to weaken at any cost as heavy BTC accumulation continues on Coinbase.
There is *HEAVY* accumulation of Bitcoin going on at Coinbase still.
– Coinbase $BTC premium is above $100 again compared to Binance
– But another $100 million deposit to Bithumb was spottedIt's a battle between U.S. high-net-worth buyers and Asia whale sellers. (1/2).
— Joseph Young (@iamjosephyoung) January 6, 2021
However, the Bitcoin futures market’s open interest has hit an all-time high above $11 billion as by data on Bybt.com. This suggests that the market is extremely overheated at this point.