Key Reasons Why Bitcoin at $700,000 Possible: Trader Willy Woo
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Willy Woo, popular trader and crypto entrepreneur, has taken to social media to discuss with his audience how high Bitcoin can potentially rise in the long term.
He suggested there are two levels, minimum and maximum ones, depending on how much of all global wealth assets will be allocated into BTC.
Here's how high Bitcoin can go, per Woo; "$24 million never gonna happen"
The trading expert believes that in accordance with “simple maths,” the lower band for Bitcoin sits at $700,000 and the upper one is $24 million per BTC. However, he immediately said that $24 million is “never gonna happen” because, for that, all the $500 trillion wealth assets in the world must be invested in Bitcoin.
In his tweet, Woo discussed how much realistically institutional investors around the world will be able to allocate in the largest cryptocurrency. He believes that this is easy to predict since “money flows in a conservative manner.”
He mentioned Fidelity’s recommendation to allocate 1-3% of funds into Bitcoin; however, then Woo reminded followers that BlackRock invested 85%. While taking the 3% figure as a “sensible allocation” (the number that comes from as early as 2014), the lower band of valuation for Bitcoin is $700,000.
The higher one in theory, per Woo, goes as high as $24 million. But in order for Bitcoin to achieve that, all the $500 trillion of global assets must be invested in BTC, and that is “never gonna happen,” Woo believes.
According to the chart of the Adoption S-curve, global BTC adoption by now has reached 4.7%. When it enters the zone between 16% and 50%, the price will reach the aforementioned levels, according to Woo.
Yuri MolchanHere's what will be able to beat Bitcoin in the future: Woo
Continuing the thread, Woo said that once the market capitalization of Bitcoin exceeds all the fiat in the world (thanks to the price skyrocketing), investors will stop caring about the ultimate BTC price since that is “a fiat mindset based on current realities.”
What investors will start doing is look for assets that “can beat BTC.” Those, first of all, will be shares of companies that will be storing their profits in Bitcoin.
Arman Shirinyan
Alex Dovbnya