Bitcoin Down But Not Out: BTC To $700,000 Highly Probable Says Analyst
August 02 2024 - 1:00PM
NEWSBTC
Bitcoin remains volatile at spot rates. Despite the spectacular
recovery yesterday, August 1, the downtrend remains, at least for
now. Specifically, looking at the candlestick arrangement in the
daily chart, there could be more growth once prices break $70,000.
Before then, traders are closely monitoring price action aware that
there could be more losses, pushing the coin below $60,000. Amid
this, some analysts are bullish in 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, said
that though bears might succeed in the short to medium term,
unwinding gains and progress made in the first half of the year,
the path of least resistance in the long term remains northward.
Related Reading: Polygon Price Risks Plunge With 90 Million MATIC
Tokens Selling At $0.5 As on-chain data reveals increased movement
among long-term holders (LTHs), shifting coins to top exchanges
could heap more pressure on prices. Even so, Woo thinks that in the
years to come, Bitcoin could range between $700,000 in the lower
level and as high as $24 million, assuming it finds maximum
adoption. The analyst said this bullish prediction is primarily
based on the bullish assumption that Bitcoin would capture anywhere
between 3% and 100% of the global wealth, which stands at over $500
trillion. Woo says the lower limit, 3%, is the upper bound of the
recommended exposure laid out by Fidelity for institutions seeking
to invest in the world’s most valuable coin. If most institutions
allocate just 3% of their portfolio to Bitcoin via derivatives as
spot ETFs, the probability of the coin soaring to $700,000 will be
high. On the other hand, assuming everyone chooses to move their
wealth to Bitcoin, divesting from the current traditional
portfolios and choosing BTC, then the coin will explode to as high
as $24 million. This assumption is, even according to Woo,
improbable but cannot be discounted. BTC Is Transitioning, Spot
ETFs Crucial For Growth Woo, in the post on X, said at spot rates,
Bitcoin is in a transition. Looking at adoption charts, the coin is
moving from the early to late majority adoption. Though in the
nascent stages, a successful, hitch-free evolution will be crucial
in driving prices even higher. Related Reading: Why XRP Price Won’t
Skyrocket After Ripple-SEC Ruling: Crypto Pundit The key driver and
catalyst of adoption in this vital stage will be the adoption of
spot Bitcoin ETFs. Since the United States Securities and Exchange
Commission (SEC) approved this derivative product, one analyst has
picked a direct correlation between bullish swings and inflows into
spot ETFs. For this reason, how institutions perceive BTC and
allocate funds will be critical. Feature image from Canva, chart
from TradingView
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