Renowned crypto analyst Willy Woo suggested that Bitcoin could reach $700,000 if it captures just 3% of global wealth.
In a Thursday tweet, Woo explained that his projections were based on an estimated global wealth of $500 trillion. He noted that if Bitcoin were to capture the entire global wealth “an unlikely scenario”, the cryptocurrency’s price could surge to $24 million per coin, adjusting for future inflation.
However, Woo favored a more realistic approach. He highlighted that established financial institutions like Fidelity typically recommend a 1-3% allocation to Bitcoin, reflecting a conservative stance on wealth management.
“If we assume 3% as a sensible allocation (and I note that was the number we used to share back in 2014!), then the lower bound of valuation is $700,000 Price target range,” Woo wrote.
Woo also touched on Bitcoin’s adoption curve, referencing the S-curve theory. He predicted that once Bitcoin’s adoption reaches 16%-50% of the global market, the cryptocurrency’s market cap will exceed that of all fiat currencies combined.
“After this inflection point, you’ll only be looking for investments that can beat BTC. For starters these are companies that store their profits in BTC,” he added.
Woo’s projections align with broader bullish forecasts from other crypto advocates. Earlier this year, analysts at global investment firm Ark Invest predicted that allocations from the $250 trillion global investable asset base into Bitcoin could significantly impact its price, potentially driving it to $2.3 million by 2030. Cathie Wood, the firm’s CEO, later raised the bet, suggesting that if institutions allocate only 5% of their wealth to Bitcoin, the price could rise to $3.8 million.
Additionally, speaking at the Bitcoin 2024 conference last week, Michael Saylor, founder of MicroStrategy and a prominent Bitcoin advocate, estimated that Bitcoin’s price could reach $49 million within the next two decades, with its market capitalization surging to around $68 trillion.
“By 2045, I believe Bitcoin will be between $13 million and $49 million per coin, depending on market trends and adoption rates. Bitcoin’s growth will likely decelerate, but it will still outpace traditional indices,” noted Saylor.
That said, Woo’s prediction arrives at a time of increasing Bitcoin adoption, particularly following the approval of several spot Bitcoin ETFs by the SEC earlier this year, which has attracted a wall of money from traditional investor. Furthermore, a proposal by US Senator Cynthia Lummis and other crypto advocates to use Bitcoin as a treasury asset could further legitimize and bolster investments in Bitcoin, if successful.
Bitcoin has experienced turbulence over the past week before stabilizing on Friday. At press time, it was trading at $64,857, reflecting a 0.38% drop over the past 24 hours.
