Bitcoin analyst Willy Woo recently made a bold prediction regarding the potential price of Bitcoin (BTC) in the future. According to him, BTC could reach $91,000 at the bottom of a bear market and $650,000 at the peak of a bull cycle. These staggering figures are based on the full deployment of cryptocurrency exchange-traded funds (ETFs) in the near future.
Woo’s calculations take into consideration allocation recommendations by asset management firms like Fidelity. These firms advocate for modest crypto portfolio allocations of up to 2%. With asset managers handling approximately $100 trillion, this could potentially lead to $2 trillion flowing into Bitcoin. As adoption of BTC increases, this number is expected to grow.
One of the key metrics used in Woo’s calculations is the market value to realized value (MVRV) ratio. This ratio compares the market value of BTC to its realized value. By analyzing this ratio alongside self-custody inflows and allocation recommendations, Woo arrived at the $2.56 trillion target for Bitcoin’s total investment.
Utilizing the MVRV ratio and considering different scenarios, Woo projected potential market capitalizations for Bitcoin. In a bull market top, the capitalization could reach $12.8 trillion, translating to a price of $650,000 per BTC. On the other hand, in a bear market bottom, the capitalization might be around $1.8 trillion, resulting in a price of $91,000 per BTC.
Despite these optimistic projections, Woo emphasized that Bitcoin is not expected to reach these price targets in the current market cycle. Capital deployments of this scale take time to fully materialize. However, once ETFs have reached their full potential, Bitcoin is likely to surpass the market capitalization of gold.
Willy Woo’s prediction paints a promising future for Bitcoin, hinting at the transformative impact of ETFs on the cryptocurrency market. While the projected price targets may seem ambitious, they underscore the growing significance of BTC in the global financial landscape. As investors continue to explore new opportunities in digital assets, the role of ETFs in shaping Bitcoin’s trajectory cannot be underestimated.