Bitcoin analyst Willy Woo has made a bold forecast regarding the future of Bitcoin in comparison to the gold market. He predicts that once ETFs have completed their role, Bitcoin will outperform the gold market cap significantly.
According to Woo, the recently launched Bitcoin ETFs could lead to BTC price targets of $91,000 at the bear market bottom and a staggering $650,000 at the bull market top. These predictions are based on the assumption that ETF investors will fully deploy their capital as recommended by asset managers.
Cautionary Note
While these price forecasts are generating excitement, Woo cautions that achieving these targets in the current market cycle may be challenging. Capital deployments in the investment landscape typically take a considerable amount of time to complete, casting some doubt on the immediate realization of these ambitious goals.
Calculations and Estimates
Woo outlines six points that serve as the foundation for his forecast. He begins by noting that asset managers globally manage around $100 trillion, with a typical 2% allocation recommendation for Bitcoin. This translates to a potential $2 trillion allocation into BTC, a figure that Woo believes could increase over time. Currently, Bitcoin holds approximately $561,159,959 in investment, with an inflow of $2 trillion potentially pushing this number to over $2.56 trillion. Using the MVRV ratio to calculate market cap versus money invested, Woo projects market capitalizations of $12.8 trillion and $1.8 trillion for bull and bear market scenarios, respectively, resulting in BTC prices of $650,000 and $91,000.
Bitcoin vs. Gold
Excluding other self-custody inflows, Woo suggests that Bitcoin could eventually surpass the capitalization of gold once asset managers have fully deployed their capital. Drawing parallels to gold’s 12-year bull run following the approval of its ETF, Woo hints at a potential sustained upward trend for Bitcoin in the future.
At the time of writing, Bitcoin was showing a 0.49% increase in the last 24 hours, reaching $64,524. Bloomberg reports that Bitcoin’s dominance in the crypto market has reached a three-year high, reflecting significant demand for U.S. exchange-traded funds holding the digital asset. Bitcoin’s market dominance stood at around 55% of the $2.4 trillion cryptocurrency market, signaling a resurgence not seen since April 2021.
Willy Woo’s bold forecast for Bitcoin’s future performance serves as a thought-provoking analysis of the cryptocurrency’s potential growth trajectory in comparison to traditional assets like gold. While the road to achieving these ambitious targets may be long and uncertain, the increasing interest and investment in Bitcoin hint at a promising future for the digital currency.