Crypto Expert Predicts Bitcoin Will Reach $650,000 Due To This Reason
April 16 2024 - 4:00PM
NEWSBTC
A crypto analyst has made a bold prediction about Bitcoin,
anticipating that the pioneer cryptocurrency could surge to
$650,000 as the Spot Bitcoin ETF market continues to grow.
BTC’s Next Price Target Expected At $650,000 In an X (formerly
Twitter) post published on Monday, Willy Woo, a popular analyst and
crypto expert with over 1 million followers, predicted Bitcoin’s
next price target, fueled by the growth and demand of Spot Bitcoin
ETFs. Related Reading: Dogecoin Whales Send 800 Million DOGE To
Exchanges, Dump Incoming? According to Woo, Spot Bitcoin ETFs could
propel the price of BTC to $91,000 at bear market bottoms, while
during bull market tops, the cryptocurrency could skyrocket as high
as $650,000. It’s important to note that at the time of writing,
Bitcoin haD not even reached $100,000, and is trading at $63,408,
according to CoinMarketCap. Woo has explained that BTC’s surge to
this exponential level can only be possible when ETF investors
completely utilize their capital. He highlights that a total
capital deployment typically takes time, emphasizing that his price
predictions are not constrained to the current crypto market
cycle. The crypto analyst also predicted that BTC will
eventually flip gold’s market capitalization as the asset manager’s
capital is deployed. Basing his forecast on gold’s 12-year bull run
after the launch of its ETF, Woo disclosed that Bitcoin could have
a similar bullish trend soon. How Bitcoin Will Surge To
$650,000 To efficiently explain his predictions, Woo provided a
brief but clear insight into the potential impact Spot Bitcoin ETFs
could have on the price of Bitcoin. He provided “back-to-envelope
calculations” that could be used to fully understand how BTC could
surge to $650,000. During his calculations, the crypto analyst
estimated the total capital managed by asset managers at $100
trillion. He mentioned that the current allocation recommendation
was 2% for Bitcoin, and given the total amount of assets managed,
it would mean $2 trillion could potentially flow into BTC.
Related Reading: Ethereum Whales Go On Buying Spree As Market Crash
Leaves Retail Panicking Presently, Bitcoin holds about $561,159,959
of investments that can be measured on-chain. By adding the
potential inflow from asset managers, the total investment in BTC
would rise to $2.56 trillion. Woo also introduced a Market
Value to Realized Value (MVRV) ratio, which compares the total
market capitalization of Bitcoin to the amount of funds invested
into it. The crypto analyst claimed that historically, this ratio
usually surges by 5x during bull market tops and by 0.7x during
bear market bottoms. Based on this ratio, Woo calculated the
potential market capitalization of BTC, estimating a price of $12.8
trillion during bull tops and $1.8 trillion during bear bottoms.
Dividing this total market capitalization by the amount of Bitcoin
in circulation would position BTC’s price per coin at $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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