According to PANews, renowned analyst Willy Woo believes that Bitcoin (BTC) is on the verge of a massive leap, with adoption rates expected to follow a similar trajectory to the internet's growth between 1997 and 2005. Woo asserts that by the end of this cycle, which is 2025, one billion people will own BTC.
The adoption rate of digital currencies is accelerating, surpassing that of the early internet. With BTC being increasingly accepted worldwide, cryptographer Adam Back believes the market is targeting a higher goal, with $100,000 considered a long-overdue target. Back states that the reason for BTC's low price is that $100,000 should have been reached years ago, so the excitement of a bull market was not high when BTC prices were rolling between $1,000 and $5,000.
Interestingly, the catalyst behind these BTC price predictions is primarily attributed to institutional demand. CryptoQuant CEO Ki Young Ju points out that if institutional funds continue to flow in, a 'seller liquidity crisis' is imminent. The surge in demand, coupled with the successful launch of spot BTC ETFs in the United States, validates BTC as a viable institutional investment and introduces a pattern where demand may soon outstrip supply.
In fact, the spot BTC ETF has become the most successful exchange-traded fund in history, accumulating nearly $30 billion. As Ki explains, this influx could trigger a supply-driven price shock, a situation where available BTC cannot meet the growing demand. Last week, net inflows into spot ETFs exceeded 30,000 BTC, further exacerbating the potential liquidity crisis.
Additionally, Ki's analysis reveals a situation where wallets that only receive transactions are accumulating BTC. This rising trend of accumulating BTC signals an increase in hoarding behavior, which, if it continues, could indicate the beginning of a seller liquidity squeeze.
As BTC's adoption curve steeply rises towards the one billion mark, the interplay between increased demand (particularly from institutional investors) and reduced supply could catalyze unprecedented price shocks.
