Bitcoin price metric suggests $15K surge after US elections

Bitcoin has support to climb all the way to $15,000 if historic trends repeat themselves this year, a new report says.

Compiled by crypto index fund provider Stack Funds on Oct. 15, the report highlights Bitcoin's market cap vs. realized cap ratio fuelling gains, which could smash $12,000 resistance.

Report expects "Significant break" in MVRV. Bitcoin has yet to attempt a breakout of $12,000, seeing rejection at $11,700 this week.

"The current MVRV ratio is at 1.8, and is purportedly well supported by the trendline where bitcoin bottomed back in late 2018. The trend is also painting a similar trajectory as it did back in the 2017 bull run, with a steady growth inclination that tested an identical support trendline multiple times," the report states.

"Given the strength in support, we are expecting a significant break of 2.0 in the near term as it looks to retest the 2019 peak at 2.5, which will put Bitcoin price above the $15,000 level."

MVRV is a metric devised by analysts Murad Mahmudov and David Puell, also the creator of Bitcoin's Puell Multiple.

It uses market cap versus realized cap, the latter created by CoinMetrics, and designed to provide a more accurate valuation of Bitcoin than traditional market cap.

Since late 2018, MVRV has been in a broad uptrend, broken only by the coronavirus cross-asset price crash in March 2020.Bitcoin MVRV ratio highlighting uptrend.

Stack also noted increasing institutional interest in Bitcoin as cementing the idea that the future is firmly bullish for price action.

As Cointelegraph noted, Bitcoin futures open interest is also climbing this month, signaling that institutional activity is picking up once more.