According to Bitcoin expert Willy Woo’s confident prediction, Bitcoin is expected to surpass the total value of the gold market once Exchange-Traded Funds (ETFs) have fully played their role.
Based on Woo’s perspective, Bitcoin ETFs that have recently been introduced could lead to price estimations of $91,000 at the market’s lowest point and an astounding $650,000 during the bull market peak. These potential figures might materialize once investors in these ETFs have completely invested according to asset manager suggestions.
Despite the continued enthusiasm surrounding these ambitious price projections, Woo issued a cautionary note. He explained that achieving these goals during the current market cycle could be challenging due to the lengthy process of deploying capital. To bolster his argument, Woo presented six key points as rough estimations.
According to asset manager estimates, the new Bitcoin ETFs could potentially lead to price targets of $91,000 during a bear market and $650,000 in a bull market once investors have fully invested. However, it’s important to note that these figures are quite conservative. Bitcoin is predicted to surpass gold’s market cap when ETF investment reaches those levels.
— Willy Woo (@woonomic) April 15, 2024
Based on the assumption that the $100 trillion collectively managed by asset managers typically includes a 2% investment in Bitcoin (BTC), Woo projects approximately $2 trillion as the potential investment size. He anticipates this figure could increase significantly over time.
According to Woo’s estimation based on on-chain data, Bitcoin currently has an investment value of approximately $561 million. If there is a flow of around $2 trillion into Bitcoin, this value would surge beyond $2.56 trillion.
In simpler terms, the Market Value to Realized Value (MVRV) ratio, which compares the market value of an asset to the amount initially invested, is five times higher in bull market peaks and just over half in bear market lows. This equates to a market capitalization of approximately $12.8 trillion for the total crypto market during bull markets and around $1.8 trillion during bear markets. Using Bitcoin (BTC) as an example, this translates to prices of roughly $650,000 per BTC in bull markets and $91,000 per BTC in bear markets.
Without considering other sources of Bitcoin’s self-custody growth, Woo predicts that Bitcoin could surpass gold’s market capitalization when institutional investor funds are fully allocated. Since gold underwent a significant 12-year price increase following its ETF launch, it’s reasonable to assume that Bitcoin might follow a similar trend.
Currently, Bitcoin is increasing by 0.49% and is priced at $64,524, based on my writing moment. As reported by Bloomberg, Bitcoin’s influence in the crypto market has peaked at a three-year maximum recently. This surge can be attributed to the robust demand for U.S. Bitcoin exchange-traded funds and the difficulties faced by smaller tokens during this period.
Based on information from CoinMarketCap, Bitcoin made up approximately 55% of the total $2.4 trillion value of the crypto market at the close of the previous week, which is similar to its share from April 2021.
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2024-04-15 19:39