Bitcoin (BTC) has the potential to reach impressive price targets in the future, according to Bitcoin analyst Willy Woo. He suggests that the cryptocurrency 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 exchange-traded funds (ETFs) in the coming years.
Woo’s claims are based on calculations that consider allocation recommendations from asset management firms. Firms like Fidelity are advocating for modest crypto portfolio allocations of up to 2%, potentially bringing up to $2 trillion to Bitcoin. This would significantly increase the cryptocurrency’s ecosystem and market value.
In addition to asset management recommendations, self-custody inflows play a significant role in the potential growth of Bitcoin’s market value. Woo notes that these inflows are currently substantial, indicating that the $2 trillion estimate could be a conservative lower-bound figure. By using the market value to realized value (MVRV) ratio, Woo predicts a potential market capitalization of $12.8 trillion at the top of the bull market and $1.8 trillion at the bottom, translating to $91,000 and $650,000 per BTC.
While the price targets of $91,000 and $650,000 per BTC may not be achieved in the current cycle due to the time required for capital deployments, Bitcoin is expected to eventually exceed the market capitalization of gold once ETFs reach their full potential. Woo emphasizes that these estimates are conservative and that Bitcoin will likely surpass gold’s capitalization as asset manager capital continues to be deployed.
The potential for Bitcoin to reach $91,000 at the bottom of the bear market and $650,000 at the top of the bull cycle through the deployment of ETFs highlights the significant growth trajectory of the cryptocurrency market. With asset management firms advocating for crypto portfolio allocations and self-custody inflows contributing to market value, Bitcoin’s ecosystem is poised for substantial expansion in the coming years.
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