Why Buying Bitcoin at $106K is the New Black (Spoiler: It’s Not a Fashion Statement!)

TL;DR

  • In a world where Bitcoin is now considered a “safer buy” than a trip to the dentist, some folks are betting on rising debt and a rush of institutional investors to make their wallets fatter than a troll after a buffet.

  • With negative exchange netflows, a stable MVRV ratio, and a whopping 55 million BTC holders, it seems the price might just be gearing up for a growth spurt that would make a teenage wizard jealous.

Is BTC Now a ‘Safer Buy?’

John Deaton, a lawyer who’s as busy as a one-armed paperhanger in a windstorm, recently shared his thoughts on the cryptocurrency that’s more popular than a cat video on the internet. He’s representing thousands of XRP investors, which is a bit like herding cats, but with more legal jargon.

He echoed the wise words of David Bailey, the Chairman of Bitcoin Magazine, who’s practically shouting from the rooftops for everyone to “get as much capital” as they can and throw it at Bitcoin (BTC) like it’s a piñata at a birthday party.

While Deaton isn’t advocating for folks to take out loans to buy crypto (because that’s a recipe for disaster), he claims that buying Bitcoin at $106,000 is a “safer buy” than it was at $20,000. This is based on the assumption that the Build Back Better (BBB) initiative and the GENIUS Act will lead to a money-printing frenzy that would make even the most reckless of wizards blush.

He also mentioned that this potential economic chaos, combined with a rush of institutional and nation-state adoption, makes buying BTC at current prices “more asymmetrical” than it was at $25,000. Because who doesn’t love a good asymmetry?

“But I’ll fully admit I suffer from both confirmation and wealth-preservation bias,” Deaton concluded, probably while clutching his crystal ball.

Further Pump Incoming?

BTC trading above the psychological level of $100,000 might still seem as surreal as a talking dog to some crypto enthusiasts, who have been waiting for this milestone longer than a wizard waits for his next cup of tea.

Moreover, some key factors suggest that the asset may experience an additional rally in the short term. For instance, the BTC exchange netflow has been predominantly negative lately, indicating that investors are moving their coins from centralized exchanges to self-custody methods. This is like moving your prized possessions from a leaky boat to a sturdy castle.

Bitcoin’s MVRV, which compares the asset’s market capitalization to its realized capitalization (and is about as fun as watching paint dry), has been fluctuating within a healthy range of 2 to 2.5. This suggests there’s still potential for further appreciation, unless, of course, the universe decides to throw a spanner in the works.

Last but not least, the total number of BTC holders recently hit a new all-time high of over 55 million, signaling that more people are jumping on the Bitcoin bandwagon than there are seats available. It’s a bit like a concert where everyone wants to see the headliner, but only a few get in!

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2025-06-09 17:18