Cryptocurrency expert Willy Woo believes that the introduction of Bitcoin ETFs could potentially cause the price of Bitcoin (CRYPTO: BTC) to surpass that of gold. Woo made this prediction in a tweet on Monday, outlining his expectations for Bitcoin’s future performance in light of the recent ETF introductions. He believes 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. Woo also emphasized that these are conservative estimates and that Bitcoin is likely to exceed gold’s market cap once ETFs have completed their role.
The SEC recently 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), and the ARK 21Shares Bitcoin ETF (BATS:ARKB), among others. This move has sparked excitement in the crypto community and has led to speculations about the potential impact on Bitcoin’s price.
Woo’s calculations are based on the assumption that asset managers, who manage $100 trillion, will allocate 2% of their funds to Bitcoin, resulting in a $2 trillion allocation. He also considered Bitcoin’s current investment holdings of $561,159,959 and used the MVRV ratio to calculate market cap versus money invested.
The estimated market cap of gold is currently around $16.1 trillion, calculated based on the precious metal’s price at $2,400 per ounce. Woo believes that once asset managers have fully deployed their funds into Bitcoin, it will surpass gold’s market cap and continue to rise.
Woo also noted that gold went on a 12-year bull run after its ETF was approved, and now it’s Bitcoin’s turn to experience a similar surge in value.
Despite a recent market crash, Woo remains optimistic about Bitcoin’s future. He recently forecasted a potential price range of $71,000 to $75,000 for Bitcoin, citing short liquidations and upward pressure from the Cumulative Volume Delta (CVD) metric. However, he also expects increased volatility in the coming months, particularly around the Bitcoin halving event in April.
ETFs have seen significant trading volumes, with $111 billion traded in March alone. However, recent market conditions have led to an 8% drop in Bitcoin prices and $83 million net outflows in spot Bitcoin ETFs.
At the time of writing, Bitcoin was trading 3.7% higher at $62,884.16. This article was created using the GPT-4-based Benzinga Neuro content generation system, which utilizes data from the Benzinga Ecosystem. Benzinga does not provide investment advice. All rights reserved.