bitcoin has been on a rollercoaster ride since hitting its all-time high (ATH) of $73,737 in March. However, despite that, several analysts and traders in the cryptocurrency community remain persistent in their bullish outlook for the asset. One example is Willy Woo, a well-known figure in the cryptocurrency sector. Earlier today, Woo x.com/woonomic/status/1818895018205012057″>shared his optimistic view on bitcoin and his thoughts on how far the price of btc could potentially go to reach that anticipated high water mark.
bitcoin's road to $700,000: hard or easy?
According to Woo in his latest post on Elon Musk’s social media platform x, the bitcoin price projection can vary drastically based on the percentage of global wealth assets allocated to bitcoin. In his explanation, Woo outlined two possible future scenarios for bitcoin’s valuation: a more likely lower band and a highly unlikely upper bound.
Related Reading: Bitwise CIO on bitcoin: “We’re not bullish enough” – Here’s why
He estimates the “conservative” value of bitcoin to be around $700,000, assuming modest levels of adoption and investment. This figure arises from a hypothetical allocation of a small percentage of global wealth to bitcoin, reflecting a growing but cautious integration of bitcoin into the broader financial sector.
Woo’s analysis delves deeper into how institutional investors could influence bitcoin’s value over time. Drawing on industry behaviors and recommendations, such as Fidelity’s suggestion that portfolios include 1-3% in btc, Woo interprets these moves as signs of growing, albeit conservative, confidence in bitcoin as a viable asset class.
Contrast these figures with BlackRock’s 85% investment, which highlights a stark divergence in institutional strategies regarding bitcoin. bitcoin’s theoretical upper limit, which would reach $24 million per unit, according to Woo, would require an unrealistic, complete conversion of the world’s $500 trillion in wealth assets into bitcoin.
He dismisses this scenario as unlikely, focusing instead on more informed predictions backed by current investment trends and economic performances.
<img src="https://technicalterrence.com/wp-content/uploads/2024/08/Bitcoin-Price-Potential-Analyst-Charts-Path-to-700000-and-Beyond.jpeg" alt="bitcoin adoption S curve. ” />
Woo explains that as bitcoin’s adoption curve follows the classic S-curve of technological adoption, currently sitting at 4.7%, the potential for significant price increases remains viable as adoption grows towards the 16% to 50% range.
What the future holds for us
In his final thoughts, Woo speculates on a future where bitcoin’s market cap could surpass all global fiat currencies.
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This paradigm shift would transform investor priorities away from fiat-based valuations toward a new economic model where major corporate assets could be measured based on their btc holdings, rather than traditional fiat metrics.
This shift, he argues, would mark a profound change in financial thinking, focusing on assets that can take advantage of bitcoin's stability and growth rather than simply outperform its value.
<blockquote class="twitter-tweet”>
Once the price generates a market cap that exceeds all the fiat money in the world, you will not care about the final price. That is a fiat mindset based on current realities.
After this turning point, you will only be looking for investments that can outperform btc. To start with, these are…
— Willy Woo (@woonomic) twitter.com/woonomic/status/1818899272206602421?ref_src=twsrc%5Etfw” target=”_blank”>August 1, 2024
Featured image created with DALL-E, chart by TradingView
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