Analyst Identifies Crucial Levels to Monitor as Bitcoin Price Prediction Anticipates ETF Influence
Bitcoin price has been affected by the ongoing tensions between Israel and Iran, but it is showing signs of recovery. After dropping to $61,500, it has bounced back to $65,342.71, marking a modest 1.5% increase and maintaining its solid $1.3 trillion market cap. Despite the volatility, one thing is clear: Bitcoin is not backing down, especially with the imminent introduction of Exchange-Traded Funds (ETFs) into the market.
These ETFs have the potential to significantly impact Bitcoin’s price trajectory. Crypto expert Willy Woo predicts that once ETF investors have fully deployed their capital, Bitcoin’s price could reach extraordinary levels. He forecasts a price target of $91,000 during the lowest point of a bear market and an astonishing $650,000 at the peak of a bull market. Woo suggests that these projections are conservative and hints at Bitcoin’s potential to surpass even gold in terms of market capitalization once ETFs become a factor.
Woo’s forecasts are not mere speculation; they are based on thorough calculations and on-chain data analysis. By considering asset managers’ recommendation of a 2% allocation into Bitcoin, which translates to approximately $2 trillion in investment, Woo envisions a total investment of $2.56 trillion in Bitcoin.
To calculate potential market capitalizations for Bitcoin, Woo utilizes the MVRV ratio, which compares market cap to money invested. During bull market tops, this ratio reaches 5x, resulting in a capitalization of $12.8 trillion and a per-coin price of $650,000. On the other hand, during bear market bottoms, the ratio drops to 0.7x, leading to a capitalization of $1.8 trillion and a per-coin price of $91,000.
However, Woo acknowledges that these calculations represent a conservative estimate as they do not take into account other significant factors, such as current substantial self-custody inflows.
Overall, Woo asserts that Bitcoin is poised to surpass gold’s market capitalization once asset manager capital has been fully deployed. He draws a parallel with gold’s 12-year bull run following the approval of its ETF and suggests that Bitcoin is now on a similar trajectory.