A well-known on-chain analyst, Willy Woo, recently made an impressive prediction for the price of Bitcoin. He forecasts that Bitcoin could reach a price of $650,000 during the peak of the bull market. However, this prediction heavily depends on whether investors of Bitcoin Exchange-Traded Funds (ETFs) follow the recommendations of asset managers and fully deploy their assets.
Woo shared his analysis on the social media platform X and emphasized that the recent approval of Spot Bitcoin and Ethereum Exchange-Traded Funds (ETFs) by the regulator of Hong Kong could have a significant impact on the market. Particularly, the US Spot Bitcoin ETFs introduced earlier this year continue to attract substantial capital inflows.
Woo explained that his price predictions are $91,000 during the bear market low and $650,000 at the bull market peak. These figures are based on ETF investors investing according to asset managers' recommendations. However, he noted that his estimates do not apply to the current cycle, as it may take some time for capital deployments to be completed.
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***.
— Willy Woo (@woonomic) April 15, 2024
These are very conservative numbers. #Bitcoin will beat gold cap when ETFs have…
Woo conducted a "back-of-the-envelope calculation" and cited asset managers managing around $100 trillion and recommending a 2% allocation in portfolios. This allocation would mean that approximately $2 trillion could flow into Bitcoin. Based on these assumptions and other factors, he forecasted the potential for a significant price increase for Bitcoin.
The analyst concluded his analysis with the outlook that Bitcoin could surpass the market capitalization of gold once the capital of asset managers is invested in the cryptocurrency. This prediction is based on the historical development of gold after the introduction of its ETF and suggests that Bitcoin could exhibit similar growth patterns.
