A cryptocurrency expert has made an assertive estimate regarding Bitcoin‘s price increase. According to this analyst, Bitcoin may reach a stunning height of $650,000 as the market for Spot Bitcoin Exchange-Traded Funds (ETFs) expands further.
BTC’s Next Price Target Expected At $650,000
On Mondays social media update, which was previously known as Twitter and now referred to as X, with an impressive following of over a million people, Willy Woo shared his prediction for Bitcoin’s upcoming price mark. This forecast was driven by the expanding market size and heightened interest in Spot Bitcoin ETFs.
Based on Woo’s prediction, Bitcoin ETFs could cause the price of Bitcoin to reach $91,000 at its lowest points during a bear market, while it could surge up to $650,000 during bull market peaks. However, it is crucial to mention that Bitcoin had not touched $100,000 at the time of writing and was trading at $63,408 according to CoinMarketCap instead.
Woo points out that for Bitcoin’s price to reach such exponential heights, it requires significant investment from ETF backers. He stresses that fully deploying capital is a process that usually takes time. However, his BTC price forecasts aren’t limited by the current crypto market trend.
A crypto expert believes that Bitcoin’s value may surpass gold’s market cap in the future as institutional investors pour more funds into it. Supporting this viewpoint, Woo looked to gold’s prolonged bullish phase following its ETF debut 12 years ago and suggested a comparable trend could be on the horizon for Bitcoin.
How Bitcoin Will Surge To $650,000
Woo offered a succinct and comprehensible explanation of how a Spot Bitcoin ETF might influence Bitcoin’s price by sharing his calculations, which provided a clear path for understanding the potential increase of Bitcoin’s value up to $650,000.
In the course of his mathematical computations, the crypto expert approximated that asset managers globally oversee a capital pool worth $100 trillion. He went on to reveal that the suggested investment proportion for Bitcoin was 2%. Consequently, this figure implies that approximately $2 trillion could theoretically be directed towards Bitcoin based on the existing asset management total.
Currently, approximately $561 million is invested in Bitcoin based on on-chain measurements. With the inclusion of estimated investments from institutional investors, the Bitcoin market could reach a staggering $2.56 trillion.
Woo presented a Market Value to Realized Value (MVRV) ratio, which measures the difference between Bitcoin’s total market value and the amount of money initially invested in it. According to his analysis, this ratio tends to increase five-fold during bull market peaks and only slightly during bear market lows.
Using this ratio, Woo determined the possible market value of Bitcoin, approximating a price tag of $12.8 trillion at bull markets’ peak and $1.8 trillion during bear markets’ minimum. By dividing the total market value by the existing supply of Bitcoin in circulation, he arrived at an estimated price per coin of approximately $650,000 during bull markets and around $91,000 during bear markets.
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2024-04-16 23:10