Bitcoin, the popular cryptocurrency, has the potential to reach staggering price levels with the full implementation of exchange-traded funds (ETFs). According to Bitcoin analyst Willy Woo, the digital asset could see price targets of $91,000 at the bottom of the bear market and $650,000 at the top of the bull cycle if investors follow the recommendations of asset management firms and fully deploy Bitcoin ETFs.
Asset managers like Fidelity are suggesting modest crypto portfolio allocations of up to 2%. Considering that these firms collectively manage around $100 trillion, this could mean up to $2 trillion flowing into Bitcoin. With the ongoing adoption of Bitcoin, this number could even increase further over time.
Willy Woo explained that by using the market value to realized value (MVRV) ratio, one can calculate the potential market capitalizations of Bitcoin based on the money invested. The target investment figure would be multiplied by five in bull market tops and 0.7 in bear market bottoms. This calculation suggests that Bitcoin could see a market capitalization of $12.8 trillion at its peak and $1.8 trillion at the lowest point, translating to prices of $91,000 and $650,000 per BTC respectively.
While these price targets seem astronomical, Willy Woo clarified that Bitcoin is not expected to reach $91,000 or $650,000 in the current market cycle due to the time it takes for such capital deployments to occur. However, the analyst believes that as ETFs reach their full potential, Bitcoin will inevitably surpass the market capitalization of gold.
Willy Woo emphasized that these price estimates are conservative and that Bitcoin is poised to exceed gold’s market capitalization once ETFs have fulfilled their role. Drawing a parallel with gold’s 12-year bull run after the approval of its ETF, Woo believes that Bitcoin is now in a similar position to experience significant growth in value with the widespread adoption of ETFs.
The potential price targets for Bitcoin, as predicted by Willy Woo, underscore the significant impact that ETFs could have on the cryptocurrency’s value. While these figures may seem lofty, they highlight the transformative power that institutional capital deployments could bring to the Bitcoin market.