bitcoin remains volatile at spot exchange rates. Despite the spectacular rally yesterday, August 1, the bearish trend remains, at least for now. Specifically, if we look at the arrangement of candles on the daily chart, there could be further growth once prices break above $70,000.
Ahead of that, traders are closely monitoring the price action, aware that there could be further losses, pushing the coin below $60,000. Amid this, some analysts are bullish on the long-term, ignoring short-term price volatility.
bitcoin remains bullish despite recent price drops
In a post on x, Willy Woo, an on-chain analyst, x.com/woonomic/status/1818895018205012057″ target=”_blank”>saying that while the bears could succeed in the short to medium term, reversing the gains and progress made in the first half of the year, the path of least resistance in the long term remains north.
As on-chain data reveals increased movement among long-term holders (LTH), the move of coins to major exchanges could put further pressure on prices. Still, Woo believes that in the coming years, bitcoin could range from $700,000 at the low end to as high as $24 million, assuming it finds maximum adoption.
The analyst said this bullish prediction is based primarily on the bullish assumption that bitcoin would capture between 3% and 100% of global wealth, which amounts to over $500 trillion. Woo says the lower limit, 3%, is the upper limit of recommended exposure set by Fidelity for institutions looking to invest in the world’s most valuable currency.
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If most institutions allocate just 3% of their portfolio to bitcoin via derivatives such as spot ETFs, the probability of the coin skyrocketing to $700,000 is high. On the other hand, assuming that everyone chooses to move their wealth into bitcoin, divesting from current traditional portfolios and choosing btc, then the coin will explode to $24 million. This assumption is, even according to Woo, unlikely, but it cannot be ruled out.
btc is in transition, spot ETFs are crucial for growth
Woo, in the post about x, said that in terms of spot rates, bitcoin is in a transition. If we look at the adoption charts, the coin is moving from early mainstream adoption to late mainstream adoption. Although it is in a nascent stage, a successful and smooth evolution will be crucial to drive prices further.
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The key driver and catalyst for adoption at this vital stage will be the adoption of spot bitcoin ETFs. Since the US Securities and Exchange Commission (SEC) approved this derivative product, one analyst has selected There is a direct correlation between bullish swings and capital inflows into spot ETFs. For this reason, how institutions perceive btc and allocate funds will be critical.
