Bitcoin Price Prediction: Brace for ETF Impact! Analyst Maps Key Levels to Watch

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As tensions flare between Israel and Iran, Bitcoin is experiencing a wild ride in the financial markets. It initially plummeted to $61,500 but has since bounced back to $65,342.71, showing a modest 1.5% increase and maintaining its solid $1.3 trillion market cap. Despite the turmoil, one thing remains clear: Bitcoin isn’t backing down, especially with the looming introduction of Exchange-Traded Funds (ETFs) into the market.

Here’s exactly what it means for you.

In a recent series of insightful posts, crypto expert Willy Woo explored how the upcoming Bitcoin Exchange-Traded Funds (ETFs) could shake up the cryptocurrency’s price trajectory. According to Woo’s analysis, these ETFs have the potential to send Bitcoin’s price soaring to unprecedented levels, capturing the attention of investors worldwide.

The new #Bitcoin ETFs brings price targets of $91k at the bear market bottom and $650k at the bull market top once ETF investors have fully deployed according to asset manager recommendations***.

These are very conservative numbers. #Bitcoin will beat gold cap when ETFs have…

Analysts are buzzing with anticipation as they await the full deployment of capital by ETF investors into Bitcoin. Woo predicts a remarkable price target of $91,000 at the lowest point of a bear market and an astounding $650,000 at the peak of a bull market. But these projections are just the beginning; Woo hints at Bitcoin’s potential to outshine even gold in terms of market capitalization once ETFs make their mark.

An Alternate View: Rich Dad Poor Dad Author Rober Kiyosaki Refuses Investment in Bitcoin ETFs; Here’s Why

Breaking Down the Numbers

Woo’s forecasts aren’t mere speculation; they’re backed by thorough calculations and on-chain data analysis. By considering asset managers’ recommendation of a 2% allocation into Bitcoin, translating to roughly $2 trillion in investment, Woo envisions a total investment of $2.56 trillion in Bitcoin.

The analyst further employs the MVRV ratio, which compares market cap to money invested, to calculate potential market capitalizations for Bitcoin. He suggests that during bull market tops, this ratio reaches 5x, resulting in a capitalization of $12.8 trillion and a per-coin price of $650,000. Conversely, during bear market bottoms, the ratio drops to 0.7x, leading to a capitalization of $1.8 trillion and a per-coin price of $91,000.

However, he acknowledges that these calculations represent a lower bound estimation, as they exclude other significant factors, such as current substantial self-custody inflows.

Read More: Bitcoin, Ethereum and XRP Price Prediction For This Week: Will Bears Dominate Halving Spree?

Overall, Woo asserts that Bitcoin is poised to exceed gold’s market capitalization once asset manager capital has been fully deployed. Drawing a parallel with gold’s 12-year bull run following the approval of its ETF, he suggests that Bitcoin is now positioned for a similar trajectory.