Analyst: If the longest is in power, Bitcoin will have a 12-year Bull Market to $650,000?

Despite seller pressure on Bitcoin prices, on-chain analyst Willy Woo believes the Bitcoin will still hit new highs thanks to the launch of a new Bitcoin exchange exchange-traded fund (ETF). Woo said in a post on X that the Token could soar to $91,000 at the bottom of the Bear Market, but could soar to $650,000 at the top of the Bull Market.

However, assuming leading asset managers fully deploy their proposed allocations to the world's most valuable encryption assets, Bitcoin will only soar to such a huge valuation.

At the spot Exchange Rate, Bitcoin looks volatile. Even after soaring to an all-time high of over $73,000 in mid-March 2024, the Token is still under pressure. So far, the prices are in one range. The upper bound of the current range is $73,800, the all-time high, and the lower bound is around $61,000.

As long as the price is within this zone, the rising trend will continue. This preview is built for most of the first quarter of 2024 after the first Bitcoin ETF Spot in the U.S. is approved.

In X's post, analysts should note that pumping up to $91,000 and $650,000 are long-term goals, not those of the current market cycle. Most importantly, it will depend on how quickly and aggressively asset managers like BlackRock add BTC to their longest portfolios, Woo added.

Even so, the forecast does not include inflows from non-hosted wallets. Capital flows from these wallets are expected to be higher due to the rise in Crypto Assets adoption.

According to Woo's assessment, asset managers manage around $100 trillion globally. If they decide to invest 2% of their holdings in Bitcoin, as recommended by Fidelity, the asset could earn about $2 trillion. Moreover, considering that the Token based on on-chain movement is worth about $561 billion, the total investment will reach $2.56 trillion.

Using the market value to realized value (MVRV) ratio, BTC could soar to a market high of $650,000 during a Bull Market cycle, Woo said. MVRV is a metric that compares market capitalization with on-chain investments.

Conversely, if the Crypto Assets market crashes, BTC could hit a Fluctuation low of $91,000. The MVRV ratio is typically 5x at the top of a Bull Market and 0.7x at the bottom of a Bear Market.

Woo believes that Bitcoin, like gold, is ready for a 12-year Bull Market. Even so, adoption and emerging regulations in Europe and Asia will determine its path towards $91,000 and $650,000.

(Source: Dalmas Ngetich)