16 April 2024
Even with Bitcoin prices facing pressure from sellers, Willy Woo, an on-chain analyst, thinks the coin will reach new highs thanks to the launch of new Bitcoin exchange-traded funds (ETFs). In a post on X, Woo said the coin could soar to as high as $91,000 in a bear bottom but soar to as high as $650,000 in a bull market top.
However, Bitcoin will only soar to these mega valuations, assuming that leading asset managers will fully deploy their recommended allocations to the world’s most valuable crypto asset.
Bitcoin In A Wide Range
At spot rates, Bitcoin looks shaky. Even after the surge to all-time highs of over $73,000 in mid-March 2024, the coin has been under pressure. So far, prices are within a range. There are caps at $73,800, or an all-time high, on the upper end and around $61,000 on the lower end of its current range.
As long as prices are inside this zone, the uptrend remains. This preview considers the formation established in the better part of Q1 2024 after the first spot of Bitcoin ETFs in the United States was approved.
In the post on X, the analyst should note that the rise to $91,000 and $650,000 are long-term targets and not for the current market cycle. Most importantly, Woo added, it will depend on how fast and aggressively asset managers like BlackRock add BTC to their diversified portfolios.
Even so, this projection excludes inflows from non-custodial wallets. Capital flows from these wallets are projected to be higher due to rising crypto adoption.
Here’s How BTC Will Soar In The Coming Years
In Woo’s assessment, asset managers manage around $100 trillion globally. If they decide to invest 2% of their holdings in Bitcoin as Fidelity recommends, the asset could receive around $2 trillion. Additionally, considering the coin’s value, based on on-chain movement, worth around $561 billion, the total investment would reach $2.56 trillion.
Using the Market Value to Realized Value (MVRV) ratio, Woo said BTC could soar to a market high of $650,000 in a bull cycle. The MVRV is a metric that compares market capitalization to on-chain investment.
Conversely, BTC could reach a swing low of $91,000 if the crypto market crushes. The MVRV ratio is typically 5X in bull market tops and 0.7X in bear market bottoms.
Woo thinks Bitcoin, like gold, is ready for a 12-year bull run. Even so, adoption and emerging regulations in Europe and Asia will shape the path to $91,000 and $650,000.