If Bitcoin will hit $ 200,000 by the end of next year, it is conservative and if the asset rises to $ 300,000 in just one year "it is not out of the question."
This is according to cryptocurrency analyst Willy Woo, who presented a fresh outlook for the price of bitcoin on Tuesday.
"I have never been so optimistic for 2021"
Bitcoin has come a long way since it fell to $ 3,000 in March. The leading cryptocurrency posted a record close to $ 20,000 on Monday and has appreciated by more than 175% this year alone.
However, analyst Willy Woo believes that Bitcoin still has more clues to profit. In a three part twitter thread On December 1, Woo indicated that if the leading cryptocurrency reaches $ 200,000 it is in fact "conservative."
“My top model suggesting $ 200k per BTC by the end of 2021 seems conservative, $ 300k is not out of the question. The current market paid on average $ 7,456 for its coins. You are all geniuses. "
Woo uses his Top Cap indicator to make this forecast. Although the metric has previously been referred to as "experimental," it has perfectly tracked peak bitcoin prices in the past.
The on-chain analyst explains that one of the reasons he is so bullish on bitcoin in 2021 that it never is is the fact that this accumulation phase occurs at the same time as the amount of bitcoin held on spot exchanges decreases.
I've never been so bullish for 2021. This re-accumulation phase coincides with spot market inventory depletion roughly 2x longer and deeper than the last cycle. It will send BTC. (Data: @glassnode) pic.twitter.com/SThnD2keVB
– Willy Woo (@woonomic) December 1, 2020
The on-chain analyst explains that one of the reasons he is so optimistic about bitcoin in 2021 that it never is is the fact that this accumulation phase occurs at the same time as the amount of bitcoins held on spot exchanges decreases.
Woo further notes that the dollar gain in bitcoin's market capitalization for every dollar invested has outpaced the bullish rallies in 2013 and 2017. According to him, “Everything points to increased reflectivity; an amplified bullish feedback loop of 2021 ”.
Woo's BTC price forecast seems a bit implausible, but if the cryptocurrency removes the current ATHs and follows previous price actions, a six-figure price tag could be registered in just a year from now.
Willy Woo Joins Chorus of Experts on Bitcoin's Bullish Outlook
It is worth noting that Willy Woo is not the only one who thinks that Bitcoin could rally exponentially in this bull cycle.
The Winklevoss Twins they told them recently told CNBC's Squawk Box that there is a high probability that bitcoin will increase 25 times over current prices. The Gemini co-founders have written a detailed blog post in the past that explains why they believe Bitcoin could hit $ 500,000 in the next few years.
The two postulated:
“Bitcoin has already made significant progress in gold, going from a whitepaper to more than $ 200 billion in market capitalization in less than a decade. Today, the market capitalization of above ground gold is conservatively $ 9 trillion. If we are correct about using a gold mark to value bitcoin, and bitcoin continues on this path, then the bullish scenario for bitcoin is that it is undervalued by a multiple of 45. In other words, the price of bitcoin could appreciate. 45 times from where it is today, which means we could see a price of $ 500,000 per bitcoin. "
Meanwhile, analytics provider Glassnode recently pointed to the unrealized net profit / loss (NUPL) metric that calls for BTC to hit between $ 133,000 and $ 590,000 in the current bull run.