Willy Woo, popular on-chain analyst, believes Bitcoin could be looking at a price tag of $200,000 within the next year. Not only does he predict the token to surge, but he suggests that the prediction is conservative and that a sky-high increase isn’t out of the question.
Using his Top Model method of analysing data, financial trends and historic trajectories of Bitcoin, Woo thinks that the current rally will send the cryptocurrency into a mass investment.
Views on 2021 (THREAD):
My Top Model suggesting $200k per BTC by end of 2021 looks conservative, $300k not out of the question.
The current market on average paid $7456 for their coins. You all are geniuses. pic.twitter.com/5t1pHXwE0b
— Willy Woo (@woonomic) December 1, 2020
Bitcoin: Mass adoption in the market?
According to the analyst, there are two important investor sets to consider:
- The long-term investors (o HODLers) who bought Bitcoin and have not touched their funds; and
- The fact that Bitcoin stored in exchanges is reducing; which indicates investment over trading – pointing to a market with greater buying opportunity and less selling pressure.
In addition to this, the adoption of institutional investment is also worthwhile considering. While retailers made a significant portion of Bitcoin holders in the previous rally, institutional interest has shifted in this bull run with firms such as Grayscale and Square buying major portions of the token.
The convenience to buy Bitcoin is also steadily increasing with payments platforms like PayPal launching cryptocurrency support. As more trusted opportunities for retailers to buy and invest in Bitcoin emerge, it’s likely that we’ll see a fresh wave of investors entering the market.
Bitcoin a safe haven to hedge against the dollar
Woo’s bullish estimation has been echoed by other analysts in the market. With the US economy battling to keep up, investors have been turning towards hedging against the dollar. The demand for safe-haven assets like gold and commodities have been increasing and Bitcoin is no different. As a popular new asset, the interest in Bitcoin has surged over the past ten months. During the time, signs point towards three major factors:
- The global pandemic and the need to store funds where value might be maintained;
- A need for more hygienic payments and cashless platforms; and
- The Bitcoin halving, which occurred in May.
As the interest in Bitcoin increases, so does the demand. With the supply capped and the rewards for mining Bitcoin halved, Bitcoin price has soared during the year. Looking at the bullish trends, Woo offered that he has “never been so bullish”:
“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.”