- Willy Woo forecasts a potential Bitcoin peak of US$650k, though not in this cycle, citing ongoing capital deployment constraints.
- Asset managers advised to allocate 2% to Bitcoin could drive its market cap beyond gold’s, depending on ETF participation.
- Bitcoin’s growth to US$650k hinges on full investment from ETFs and the recommended US$2 trillion allocation by asset managers.
Where is the top going to be for Bitcoin in the current bull market? While most digital assets have been tumbling, with Bitcoin falling 11% in the past week – the largest correction it has seen in a while – some don’t worry about the immediate situation, looking ahead to what’s likely still to come.
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Willy Woo, a well-known Bitcoin analyst, believes the king of crypto could reach US$650k (AU$1.01m), a whopping 10X from where we currently are. Caveat: he doesn’t think BTC will achieve that lofty goal this cycle, admitting capital restraints.
These are very conservative numbers. Bitcoin will beat gold cap when ETFs have completed their role. Note these are not targets for THIS cycle, it takes a long time for capital deployments to complete.
Willy WooBitcoin Will Reach Target if These Conditions Are Met, According to Woo
Woo speculates BTC will hit $650k ‘once ETF investors have fully deployed according to asset manager recommendations’.
He explains that asset managers, who collectively manage US$100 trillion (AU$155 trillion), are currently recommended to allocate 2% to Bitcoin, equivalent to US$2 trillion (AU$3.1 trillion) today.
With Bitcoin’s existing US$561* million (AU$873 million) investment, this could rise to US$2.56 trillion (AU$4 trillion), Woo calculates.
Using the MVRV ratio, which varies between 0.7x in bear markets and 5x in bull markets, he says potential market capitalisations could range between US$1.8 trillion (AU$2.8 trillion) and US$12.8 trillion (AU$19.9 trillion), translating to Bitcoin prices of approximately US$91k (AU$141.7k) to US$650k per coin.
Woo emphasised these calculations are conservative, excluding significant self-custody inflows. Given these trends, he expects Bitcoin to surpass gold’s market cap, especially considering gold’s performance following its ETF approval.
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* This figure, although small in comparison to Bitcoin’s total market cap, could specifically represent the cumulative dollar amount of transactions for buying Bitcoin that have been recorded on the blockchain. It is not clear where Woo sourced this number and he did not immediately respond to comments. Understanding the method used to track and report this investment is crucial. The figure might be correct within a narrow scope (like direct and certain traceable investments) but does not reflect the total investment or market capitalisation of Bitcoin, which includes much larger scales of indirect investment and valuation changes.
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