Originally published on: August 01, 2024
According to Bitcoin analyst Willy Woo, the price of Bitcoin could soar to over $700,000 if financial institutions continue to embrace the world’s first cryptocurrency and allocate at least 3% of their portfolios to it. Woo’s calculations are based on the assumption that Bitcoin’s growing price is attracting more institutional investors with significant capital to invest in the asset.
The potential increase in Bitcoin’s price is linked to the influx of institutional investors into the market, which could lead to a surge in demand and price appreciation. Historical chart patterns suggest that Bitcoin could reach a new all-time high by September, indicating a bullish trend for the cryptocurrency.
Woo’s analysis takes into account the total value of global wealth assets, exceeding $500 trillion. To reach the projected price of over $700,000, Bitcoin’s adoption curve must surpass the 16% threshold. Currently, Bitcoin has been adopted by 4.7% of the world’s population as of August 1, indicating room for growth and potential acceleration in adoption rates.
Despite the positive outlook, Bitcoin’s price is still 12% below its previous all-time high of $73,750 on March 14. The recent price of Bitcoin stands at $64,465 as of August 1, showing a moderate increase of 2.9% in the past month.
One factor affecting Bitcoin’s momentum is the slowing inflows to US-based spot Bitcoin exchange-traded funds (ETFs). With only $300,000 accumulated in US ETFs on July 31 and significant net outflows on July 30, Bitcoin is facing challenges in gaining momentum from institutional investors.
However, the optimism surrounding Bitcoin remains high, as over 75% of short-term holders were in profit as of July 24. This indicates potential upward momentum for Bitcoin, as retail demand for the cryptocurrency remains strong.
In conclusion, with increased institutional adoption and positive market indicators, Bitcoin could be on track to hit record-breaking prices in the near future. Subscribe to our newsletter for more critical insights and investment opportunities in the cryptocurrency market.