Bitcoin (BTC) price is predicted to reach $650 thousand, according to top analysts
Approval of spot Bitcoin ETFs The Hong Kong Securities and Futures Commission’s (SFC) detection of Ethereum ETFs has sparked debate within the cryptocurrency community about potential price targets and their impact on market capitalization.
Historical Priority Supports Woo’s Projection
CMCC Crest co-founder and analyst Willy Woo weighed in on the topic in an X post, offering insight into the potential trajectory of Bitcoin price in light of ETF adoption in Hong Kong.
According to Woo, new Bitcoin ETFs could hit price targets of $91,000 at the bottom of a bear market and $650,000 at the peak of a bull market as soon as ETF investors fully deploy capital, based on recommendations from asset managers.
However, Woo cautions that these forecasts are not specific to the current market cycle as capital deployments take time to complete. He argued that once asset managers’ capital is fully deployed, Bitcoin will surpass gold’s capitalization.
Woo’s predictions are drawn from history as the spot Bitcoin ETF was approved by the US, witnessing unprecedented growth in a short period of time and receiving praise from investors. Michael Saylor.
Bitcoin Price Calculations Broken
Woo did a back-end calculation to help the crypto community understand his predictions and give a rough idea of the potential impact of ETF adoption on Bitcoin price.
He started by considering the total capital managed by asset managers, which currently stands at $100 trillion. Based on the typical recommendation of a 2% allocation to Bitcoin (as seen on Fidelity), this would mean a $2 trillion allocation to BTC.
Currently, Bitcoin has approximately $561,159,959 worth of investment measured on-chain. With the addition of ETF capital, total investment in Bitcoin will reach $2.56 trillion.
Woo then uses the Market Value relative to the Realized Value, MVRV rate Calculation of potential market capitalization at different market stages. At the tops of a bull market, the MVRV ratio is typically around 5x, and at the bottoms of a bear market it is around 0.7x.
These result in an estimated market capitalization of $12.8 trillion and $1.8 trillion respectively, corresponding to price targets of $650,000 and $91,000 per coin.
However, Woo emphasizes that these estimates represent a lower bound because they do not take into account other variables, such as personal custody entries, which are currently important.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-life applications of blockchain technology and innovations to ensure mainstream acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture. follow him excitementLinkedIn
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