Spot Bitcoin ETFs Driving Growth
Crypto expert Willy Woo believes Bitcoin is poised to skyrocket to $650,000, fueled by the growing popularity of Spot Bitcoin ETFs. These ETFs allow investors to trade Bitcoin directly on exchanges, increasing demand and potentially pushing the price up.
Calculations for the Surge
Woo’s calculations estimate that $2 trillion could flow into Bitcoin from asset managers who currently allocate 2% of their $100 trillion to the cryptocurrency. This would increase the total investment in Bitcoin to $2.56 trillion.
Using a Market Value to Realized Value (MVRV) ratio, Woo predicts that Bitcoin’s market capitalization could reach $12.8 trillion during bull market tops and $1.8 trillion during bear market bottoms. Dividing this by the number of Bitcoins in circulation yields price targets of $650,000 and $91,000, respectively.
Gold’s Market Capitalization Flip
Woo also predicts that Bitcoin will eventually surpass gold’s market capitalization, as asset managers deploy more capital into the cryptocurrency. He draws parallels to gold’s 12-year bull run after the launch of its ETF, suggesting a similar trajectory for Bitcoin.
Timeline and Considerations
Woo emphasizes that his price predictions are not limited to the current crypto market cycle. The full deployment of capital from ETF investors takes time, and his calculations assume complete utilization of capital.
