Bitcoin has been on a rollercoaster ride since hitting its all-time high (ATH) of $73,737 in March. However, despite this, many analysts and traders in the cryptocurrency community remain bullish on the asset. One example is Willy Woo, a well-known figure in the cryptocurrency sector. This morning, Woo common his bullish view on Bitcoin and his observations on how high the price of BTC could potentially rise to reach its expected peak.
Bitcoin’s Road to $700,000: Difficult or Effortless?
According to Woo in his latest post on Elon Musk’s social media platform, X, Bitcoin’s price prediction could vary significantly depending on the percentage of global wealth assets allocated to Bitcoin. In his explanation, Woo outlined two possible scenarios for Bitcoin’s future valuation: a more likely lower bound and a highly unlikely upper bound.
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He estimated a “conservative” value of Bitcoin at around $700,000, assuming modest levels of adoption and investment. This figure is based on a hypothetical allocation of a compact percentage of the world’s wealth to Bitcoin, reflecting Bitcoin’s growing but cautious integration with the broader financial sector.
Woo’s analysis delves further into how institutional investors can affect Bitcoin’s value over time. Drawing on industry behavior and recommendations, such as Fidelity’s suggestion that portfolios hold 1-3% BTC, Woo interprets these moves as signs of growing, if conservative, confidence in Bitcoin as a viable asset class.
He contrasts these numbers with BlackRock’s 85% investment, underscoring the stark divergence in institutional strategies toward Bitcoin. Bitcoin’s theoretical cap of $24 million per unit, according to Woo, would unrealistically require a total conversion of $500 trillion of the world’s wealth assets into Bitcoin.
He dismisses this scenario as unlikely and instead focuses on more reasonable predictions supported by current investment trends and economic behavior.
Woo explains that because Bitcoin’s adoption curve follows the classic S-curve of technology adoption, which currently stands at 4.7%, the potential for significant price increases remains real as adoption grows toward the 16%-50% range.
What will the future bring?
In his closing thoughts, Woo speculates on a future in which Bitcoin’s market capitalization will surpass that of all global fiat currencies.
Such a paradigm shift would mean a shift in investor priorities, moving away from fiat currency-based valuations towards a modern economic model in which the assets of the largest companies could be measured by the BTC they hold rather than customary fiat currency-based metrics.
In his view, this change would represent a profound shift in thinking about finance, focusing on assets that can leverage bitcoin’s stability and growth, rather than simply exceed its value.
Once the price creates a market cap that exceeds all fiat money in the world, you won’t care about the final price. That’s the fiat money mentality based on current realities.
After this turning point, you will only look for investments that can beat BTC. For starters, these are…
— Willy Woo (@woonomic) August 1, 2024
Featured image created with DALL-E, chart from TradingView
