Bitcoin Forecast: Analyst Predicts Bull Market Surge
Bitcoin Poised to Outperform Gold Market Cap
In a bold projection, analyst Willy Woo anticipates a significant surge in Bitcoin’s market cap, surpassing that of gold once ETFs play out their role. Woo suggests that with the introduction of Bitcoin ETFs, the cryptocurrency could potentially reach price targets of $91,000 during bear market lows and soar to $650,000 at bull market peaks. However, he cautions that achieving these targets may take time due to the gradual deployment of capital by ETF investors.
Predictions Based on Asset Manager Recommendations
Woo’s forecast hinges on the assumption that asset managers, overseeing an estimated $100 trillion, may allocate around 2% of their holdings to Bitcoin, amounting to a potential $2 trillion inflow into the cryptocurrency. Presently, Bitcoin is recorded to have attracted $561,159,959 in investments, according to on-chain data, with the potential to surge to over $2.56 trillion with the projected capital inflow.
Market Cap Calculations and Future Prospects
Using the MVRV ratio to assess market cap against invested funds, Woo envisions a market capitalization of $12.8 trillion in bullish scenarios and $1.8 trillion in bearish scenarios, translating to Bitcoin prices of $650,000 and $91,000, respectively. Woo also speculates that Bitcoin could outpace gold’s market cap once asset manager capital is fully deployed, drawing parallels to gold’s 12-year bull run post-ETF approval.
Market Trends and Bitcoin Domination
At present, Bitcoin has seen a 0.49% increase in value over the last 24 hours, reaching $64,524. Bloomberg reports that Bitcoin’s dominance in the crypto market has hit a three-year high, reflecting robust demand for U.S. ETFs holding the digital asset. Bitcoin’s dominance in the $2.4 trillion cryptocurrency market stands at approximately 55%, a level not seen since April 2021.
