Renowned cryptocurrency analyst Willy Woo has projected that the introduction of Bitcoin ETFs could potentially drive Bitcoin’s (CRYPTO: BTC) price to surpass that of gold.
What Happened: In a tweet on Monday, Woo outlined his predictions for Bitcoin’s future performance in light of the recent introduction of Bitcoin ETFs. He suggested that once ETF investors have fully deployed, Bitcoin could reach price targets of $91k at the bear market bottom and $650k at the bull market top. He emphasized that these are conservative estimates and that Bitcoin is likely to exceed gold’s market cap once ETFs have completed their role.
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Woo’s calculations are based on the assumption that asset managers, who manage $100T, will allocate 2% of their funds to Bitcoin, resulting in a $2T allocation. He also factored in Bitcoin’s current investment holdings of $561,159,959 and used the MVRV ratio to calculate market cap versus money invested.
Why It Matters: The SEC approved applications for various entities, including the Grayscale Bitcoin Trust (NYSE:GBTC), the Bitwise Bitcoin ETF (NYSE:BITB), the Hashdex Bitcoin ETF (NYSE:DEFI), the Valkyrie Bitcoin Fund (NASDAQ:BRRR), the ARK 21Shares Bitcoin ETF (BATS:ARKB) and others on Jan. 10, 2024.
It should be noted that the estimated market cap of gold is nearly $16.1 trillion, calculated on the basis of the precious metal at $2,400 per ounce.
Woo said in his post, “Bitcoin will certainly exceed Gold capitalisation by the time asset manager capital has deployed. Gold went on a 12 year bull run when it’s ETF was approved, now it’s Bitcoin’s turn.”
Bitcoin’s current market capitalization is $1.2 trillion. According to Woo at $650,000 per coin, the market cap for the apex cryptocurrency is set to rise to $12.8 trillion.
Recently, Woo forecasted Bitcoin’s price to potentially reach $71,000 to $75,000 due to short liquidations, despite a critical support level at $58,900. He remained optimistic as the Cumulative Volume Delta (CVD) metric suggested upward pressure. Woo anticipated increased volatility around the Bitcoin halving event, preparing for choppy market conditions in April, but still expected a bullish scenario with short liquidations driving the price upward.
Bitcoin ETFs have experienced significant trading volumes, with a whopping $111 billion traded in March alone, according to another Benzinga report. However, the past week saw an 8% drop in Bitcoin prices, leading to $83M net outflows in spot Bitcoin ETFs, as highlighted in this Benzinga article.
Price Action: At the time of writing, Bitcoin traded 3.7% higher at $62,884.16, according to data from Benzinga Pro.
Photo Courtesy: Shutterstock.com
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