Bitcoin analyst Willy Woo has made a bold prediction that Bitcoin will outperform the gold market cap once ETFs have completed their role. He suggests that the recently launched Bitcoin ETFs will play a significant role in this process, potentially driving BTC price targets to $91,000 at the bear market bottom and $650,000 at the bull market top.
While Woo’s forecasts are optimistic, he also warns that these targets may not be achievable in the current cycle due to the lengthy process of capital deployment. He emphasizes that it takes time for ETF investors to fully deploy their capital according to asset manager recommendations, which could delay the realization of these price targets.
Back of the Envelope Calculations
Woo outlines six key points to support his prediction, basing his forecast on the assumption that the $100 trillion managed by asset managers generally has a 2% allocation recommendation for Bitcoin. This would result in a potential allocation of about $2 trillion into BTC, which he believes could increase over time as more investors come on board.
Comparison to Gold Capitalization
Excluding other self-custody inflows, Woo believes that Bitcoin has the potential to exceed gold capitalization once asset manager capital is fully deployed. Drawing parallels to gold’s 12-year bull run after the approval of its ETF, he suggests that Bitcoin may follow a similar trajectory in the future.
At the time of writing, Bitcoin was trading at $64,524, up 0.49% in the last 24 hours. Bloomberg reports that Bitcoin’s dominance in the crypto market has reached a three-year high, indicating strong demand for U.S. exchange-traded funds holding the digital asset. According to CoinMarketCap data, Bitcoin accounted for about 55% of the $2.4 trillion cryptocurrency market, a level not seen since April 2021.
Overall, Willy Woo’s forecast paints a compelling picture of Bitcoin’s potential future growth, fueled by the increasing adoption of ETFs and rising interest from asset managers. While the exact timeline for reaching price targets of $91,000 and $650,000 remains uncertain, the underlying trend towards greater institutional investment in Bitcoin suggests that the cryptocurrency’s market cap could indeed rival that of gold in the years to come.