Despite Bitcoin‘s prices being under selling pressure, according to Willy Woo, an on-chain analyst, the digital currency is predicted to hit new peaks due to the introduction of new Bitcoin ETFs. On his X platform, Woo stated that Bitcoin could reach a price of up to $91,000 in a bear market bottom and as much as $650,000 during a bull market peak.
Bitcoin can reach such massive valuations solely if major investment firms follow through and invest the suggested amount in the prominent cryptocurrency.
Bitcoin In A Wide Range
Bitcoin’s price stability at current spot rates raises concerns. Despite hitting new peaks above $73,000 in mid-March 2024, the cryptocurrency has faced downward pressure. Its price fluctuations have kept it within a specific range, with resistance around $73,800 (an all-time high) and support near $61,000.
As long as prices stay within this range, the upward trend continues. This analysis looks at the pattern that formed towards the end of Q1 2024 following the initial approval of a Bitcoin ETF in the US.
In the post about X, it is crucial for the analyst to mention that $91,000 and $650,000 are potential long-term price goals, not expected during the present market trend. Woo emphasized, however, that these levels will hinge on the pace at which institutions such as BlackRock adopt Bitcoin as a portfolio component.
Despite this estimation, it does not take into account transfers from wallets not under our control. The inflow from such wallets is expected to increase given the growing trend of cryptocurrency usage.
Here’s How BTC Will Soar In The Coming Years
According to Woo’s estimation, approximately $100 trillion is managed by asset managers worldwide. If these managers follow Fidelity’s recommendation and allocate 2% of their assets to Bitcoin, the cryptocurrency would receive an inflow of around $2 trillion. With a current value of roughly $561 billion for Bitcoin based on on-chain activity, the total investment amount would reach approximately $2.6 trillion.
According to Woo’s analysis using the Market Value to Realized Value (MVRV) ratio, Bitcoin could reach an astounding price of $650,000 during a bull market. The MVRV ratio is a useful tool that measures the relationship between the current market capitalization and the amount of money investors have spent on buying Bitcoins in the past.
Instead, the price of Bitcoin (BTC) might hit a rock-bottom of $91,000 should the cryptocurrency market experience a significant downturn. The Market Value to Realized Value (MVRV) ratio usually hovers around 5 times the current price at market tops during bull markets, while it averages 0.7 times in bear market bottoms.
Woo believes that Bitcoin’s price trend could resemble gold’s 12-year bull market. However, Europe and Asia’s Bitcoin adoption rates and regulatory frameworks will significantly impact its journey towards reaching $91,000 and $650,000.
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2024-04-16 06:04