Famous market analyst Willy Woo commented that Bitcoin only needs to represent 1% of the value of global wealth assets to reach a price of US$1 million per unit.
With Bitcoin currently trading at $62,200, that would mean a 16x, or 1,600%, increase, not a stretch for a coin that has seen such gains in the past.
Willy Woo believes Bitcoin will reach $1 million
Even before Bitcoin reaches the dreamed $100,000, analysts are already looking higher. For Willy Woo, one of the most famous analysts in the market, the forecast is that the cryptocurrency will reach a value of $1 million per unit.
To achieve this, BTC will need to attract $5 trillion in investment. While this may seem like a lot, it represents a small fraction of the entire global asset market.
“A rough calculation of how much capital needs to be invested in Bitcoin for it to reach $1 million per coin. Answer: $5 trillion, or about 1% of global wealth assets. So far, only $620 billion has been invested.”
Bitcoin's market cap will reach $19.8 trillion if this happens, surpassing gold, which currently stands at $17.1 trillion.
Explaining the calculation, Woo talks about an indicator known as MVRV, used to measure the difference between invested capital and market value.
“It was 8x at the top of 2013, 4.8x at the top of 2017, and 4.0 at the top of 2021.”
“Based on this historical liquidity trend, we can expect the next top to have a multiplier of 3.5x,” Woo explains. “If we hit $1 million in the next cycle after this one, the multiplier will be even lower, given that the trend toward higher liquidity makes it harder to move the price per dollar invested.”
Finally, the analyst says that these estimates are conservative. In other words, he is confident that BTC will easily reach this mark.
Michael Saylor also touched on the subject
Another important market figure who also addressed these numbers was Michael Saylor. During a presentation at the Bitcoin 2024 conference, held last month, the billionaire compared the size of BTC to other assets.
Bitcoin is considered a giant because it is a US$1 trillion asset, but it has great growth potential when compared to other assets. Source: Michael Saylor/Reproduction.
Claiming that Bitcoin is the best store of value asset of all, Saylor claims that its market value could reach $280 trillion by 2045, surpassing gold and the entire art market.
In other numbers, this would mean a 228-fold increase, leaving Bitcoin in the range of $13 million per unit.
How soon can Bitcoin reach a million dollars?
If Bitcoin's growth continues at the pace seen in recent years, it is plausible to imagine that this value will be reached faster than many expect, although the time horizon and conditions necessary for this will vary depending on the global economic scenario and the adoption of cryptocurrency.
In a scenario of constant growth, similar to what Bitcoin has experienced in the last decade, the price of the cryptocurrency could reach one million dollars in about eight to ten years.
This forecast assumes a steady annual growth rate of 50% to 100%. Continued adoption by institutional investors, coupled with Bitcoin’s natural scarcity due to its limited supply, are factors that could boost its value.
However, this process could accelerate if there is mass adoption by governments and large corporations. Growing confidence in Bitcoin as a store of value could lead to an even faster appreciation.
If the cryptocurrency starts to be seen as a solid alternative to gold and other stores of value, the price could reach the million-dollar mark in a shorter period of time, possibly between five and seven years.
On the other hand, in an extreme hyperbitcoinization scenario, where Bitcoin would replace fiat currencies facing hyperinflation or collapse, the cryptocurrency's value could skyrocket in an even shorter period of time, perhaps in less than five years.
This scenario, although more speculative, is not impossible, especially in an increasingly digital world marked by economic uncertainty.
However, it’s important to consider the challenges that could slow this growth. Strict government regulations and a hostile regulatory environment could slow — not stop — Bitcoin’s rise, pushing the $1 million milestone back by 10 to 15 years.
