Bitcoin analyst Willy Woo has expressed optimistic price projections for Bitcoin (BTC) in the future. According to his calculations, BTC could reach $91,000 at the bottom of the bear market and $650,000 at the top of the bull cycle with the full deployment of cryptocurrency exchange-traded funds (ETFs).
Woo highlighted that asset management firms like Fidelity are recommending modest crypto portfolio allocations of up to 2%. With these firms managing approximately $100 trillion, there is a possibility of up to $2 trillion being allocated to Bitcoin. This number could increase as Bitcoin gains more adoption in the financial market.
Notably, self-custody inflows are currently significant, leading to a potential increase in the allocated funds for Bitcoin. Woo mentioned that the $2 trillion target is a conservative estimate, considering the growing interest in self-custody solutions for cryptocurrencies.
Using the market value to realized value (MVRV) ratio, Woo calculated that the target investment figure would be multiplied by five in bull market tops and 0.7 in bear market bottoms. This calculation could result in a market capitalization of $12.8 trillion at the peak and $1.8 trillion at the bottom, translating to $91,000 and $650,000 per BTC.
Despite these promising projections, Woo clarified that Bitcoin may not reach the $91,000 and $650,000 targets in the current cycle due to the time required for capital deployments. However, he emphasized that Bitcoin is on track to surpass the market capitalization of gold when ETFs have fully unleashed their potential in the market.
The future of Bitcoin seems bright with the potential integration of ETFs in the cryptocurrency market. While the projected price targets of $91,000 and $650,000 per BTC may not be achieved in the near term, the long-term growth prospects for Bitcoin are promising. As institutional investors and asset management firms continue to recognize the value of Bitcoin, its market capitalization and price potential could soar to unprecedented levels, surpassing even traditional assets like gold.
Leave a Reply