Willy Woo, a prominent Bitcoin on-chain analyst, speculated in an interview with Unchained that Bitcoin would go above $300,000 by the end of the bull run this year.
Woo, who is also the author of the “The Bitcoin Forecast,” a market intelligence newsletter, said, “currently, that top target is launching upwards and at the start of this year January, it was zoning into an area of $200,000 to $300,000. And December of this year is typical to what we would expect from the end of a bull market.”
He continued, “If we get that, not saying it will happen this time around, but if we do not top out in December, that target now is lifted to above $300,000 because of the trajectory of the upper band of that moving average.”
According to Woo, he made this speculation following a mean reversion model he ran which is similar to an all-time moving average on the market cap. This model predicts drops like it has done for every top in bitcoin history.
The continuous increase in the price of Bitcoin is evidence of the great inflow of both institutional players and high net individuals into the crypto space. This set of people move large amounts of bitcoin from exchanges and lock them away with no history of selling, showing that more people are recognizing the cryptocurrency as a good store of value that it is.
The high rate of purchase of bitcoin by institutions and corporate firms without selling has also led to a bitcoin supply shock, a mismatch between demand and supply, reducing the number of coins available.
For instance, among institutions accumulating bitcoin is the intelligence company MicroStrategy that has about 91,579 BTC worth about $2.226 billion. Electric car company Tesla, founded by one of the richest men in the world, Elon Musk, also has a total of bitcoin worth about $1.5 billion. There are also companies like Grayscale investments and Square, etc.
Woo also mentioned that since the creation of Bitcoin, the adoption of the cryptocurrency by the public keeps growing as we are “currently just barely above the two percent of the world having exposure to Bitcoin…most people are holding it to get exposure.”
The on-chain bitcoin analyst believes that by 2025, one-eighth of the world’s population will have exposure to Bitcoin, which he termed a monetary base.
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