Top Analyst Predicts Bitcoin to Deliver Returns of 20 to 70 Against Conventional Assets
Bitcoin’s Potential to Outshine Gold and S&P 500 by 20%-70%
Despite recent market volatility and a dip in Bitcoin’s price to around $61,000, renowned crypto analyst Willy Woo believes that Bitcoin has the potential to outperform traditional assets such as gold and the S&P 500 by a significant margin, possibly ranging from 20% to 70%.
Woo draws attention to the limitations of the Consumer Price Index (CPI) inflation metric reported by the Federal Reserve and argues that investors should consider a more comprehensive measure to truly grasp the impact on their investments. This broader measure includes both CPI inflation and monetary debasement, which Woo estimates to be around 8% on average.
While gold can help investors maintain their purchasing power by typically keeping pace with the combined rate of CPI inflation and monetary debasement, Woo points out that the S&P 500 offers a better hedge, outperforming the combined rate by approximately 3%.
However, the most intriguing aspect of Woo’s analysis is his forecast for Bitcoin. He suggests that Bitcoin has the potential to surpass both gold and the S&P 500 by 20% to 70% when taking inflation and monetary debasement into account. This highlights Bitcoin’s appeal as a powerful investment vehicle in today’s challenging economic climate.
As the global economy grapples with uncertainties, Bitcoin’s potential to deliver substantial returns makes it an attractive option for those seeking to protect and grow their investments.
Turning to Bitcoin’s recent price performance, there has been a significant net outflow of $545 million from U.S. Spot Bitcoin ETFs, indicating a shift in investor sentiment towards digital assets. Consequently, the price of Bitcoin experienced a 6.5% drop to $61,060 within the last 24 hours, reaching its lowest point of the day.
Furthermore, derivatives traders faced setbacks as $90.78 million worth of Bitcoin longs were liquidated within a 12-hour period.