A crypto analyst has made a bold prediction about this Bitcoinexpecting the pioneer cryptocurrency could soar to $650,000 if the Discover Bitcoin ETF market continues to grow.
BTC’s next price target is expected at $650,000
In an X-post (formerly Twitter) published on Monday, Willy Woo, a popular analyst and crypto expert with over 1 million followers, said, predicted Bitcoin’s next price target, fueled by the growth and demand for Spot Bitcoin ETFs.
According to Woo, Spot Bitcoin ETFs could boost the price price of BTC to $91,000 at bear market lows, while during bull market tops the cryptocurrency can skyrocket to $650,000. It is important to note that at the time of writing Bitcoin hadn’t even reached $100,000 yetand is trading at $63,408, according to CoinMarketCap.
Woo explained that BTC’s rise to this exponential level can only be possible when ETF investors fully utilize their capital. He emphasizes that total capital deployment usually takes time, and emphasizes that this is the case price predictions are not limited to the current crypto market cycle.
The crypto analyst also predicted that BTC will eventually reverse gold’s market cap as the asset manager’s capital is deployed. Woo based his prediction on gold’s 12-year bull run following the ETF’s launch Bitcoin could have a similar bullish trend soon.
How Bitcoin will rise to $650,000
To efficiently explain his predictions, Woo provided a brief but clear insight into the potential impact Spot Bitcoin ETFs could have an effect on the price of Bitcoin. He provided “back-to-envelope calculations” that could be used to fully understand how BTC could rise to $650,000.
During his calculations, the crypto analyst estimated the total capital managed by asset managers at $100 trillion. He said the current allocation recommendation for Bitcoin is 2%, and given the total amount of assets under management, this would mean $2 trillion could be spent. possible flows into BTC.
Currently, Bitcoin owns approximately $561,159,959 in investments that can be measured on-chain. By adding the potential influx of asset managerstotal investment in BTC would increase to $2.56 trillion.
Woo also introduced a Market Value to Realized Value (MVRV) ratio, which compares Bitcoin’s total market capitalization to the amount of money invested in it. The crypto analyst claimed that historically, this ratio typically increases by 5x during bull market peaks and 0.7x during bull markets. bear market bottoms.
Based on this ratio, Woo calculated BTC’s potential market capitalization, estimating a price of $12.8 trillion during bull tops and $1.8 trillion during bear bottoms. Divide this total Market capitalization the amount of Bitcoin in circulation would make the price of BTC per coin $650,000 and $91,000 respectively.
BTC price shows a lot of volatility | Source: BTCUSD on Tradingview.com
Featured image from The Cryptonomist, chart from Tradingview.com
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