Bitcoin Price Prediction: Analyst Maps Potentials Highs and Lows For BTC Price
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Amid rising tensions between Israel and Iran, Bitcoin faced turbulence, plummeting to $61,500 before showing signs of recovery. Bitcoin stands at $65,342.71, up 1.5%, maintaining a $1.3 trillion market cap. In such a situation, Bitcoin is bound to face the market heat, but one analyst says that Bitcoin is not out; it will shine once ETF investors fully deploy their capital.
Here’s what it means for you!
Bitcoin’s Price Scenario from Bear to Bull
In a recent series of X posts, Willy Woo, a prominent figure in the crypto space, delved into the potential impact of new Bitcoin Exchange-Traded Funds (ETFs) on the cryptocurrency’s price. According to recommendations from asset managers, these ETFs could lead to significant price targets for Bitcoin.
The new #Bitcoin ETFs brings price targets of $91k at the bear market bottom and $650k at the bull market top once ETF investors have fully deployed according to asset manager recommendations***.
These are very conservative numbers. #Bitcoin will beat gold cap when ETFs have…
— Willy Woo (@woonomic) April 15, 2024
Analysts suggest that once ETF investors have fully deployed their capital, Bitcoin could see a price target of $91,000 at the bottom of a bear market and a staggering $650,000 at the peak of a bull market. However, he emphasizes that these are conservative estimates and that Bitcoin has the potential to surpass the market capitalization of gold once ETFs have played their role.
To arrive at these estimates, Woo provides some back-of-the-envelope calculations. He notes that asset managers currently recommend a 2% allocation into Bitcoin, which translates to around $2 trillion of investment. Using on-chain data to measure Bitcoin’s current investment, he estimates that this allocation would bring Bitcoin’s total investment to $2.56 trillion.
BTC Top and Bottom
The analyst further employs the MVRV ratio, which compares market cap to money invested, to calculate potential market capitalizations for Bitcoin. He suggests that during bull market tops, this ratio reaches 5x, resulting in a capitalization of $12.8 trillion and a per-coin price of $650,000. Conversely, 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, he acknowledges that these calculations represent a lower bound estimation, as they exclude other significant factors, such as current substantial self-custody inflows.
Overall, Woo asserts that Bitcoin is poised to exceed gold’s market capitalization once asset manager capital has been fully deployed. Drawing a parallel with gold’s 12-year bull run following the approval of its ETF, he suggests that Bitcoin is now positioned for a similar trajectory.
Filed under: Bitcoin - @ April 15, 2024 1:22 pm