Bitcoin price on the way to US$200,000? Willy Woo polishes the crystal ball
The Bitcoin price seems to be making itself comfortable at 35,000 US dollars and the other top 10 coins are also making more money than money today. In contrast, hodlers of the altcoins Enjin and Hedera Hashgraph (HBAR) can be happy about bullish news – including massive price increases. Crypto analyst Willy Woo is convinced that this will also be the case for Bitcoin in the long term. Market update.
The Bitcoin price continues to take a breather – after all, a parabolic rally can be quite exhausting. At press time, BTC is trading above the US$35,000 mark after failing to Crypto Trader recapture the US$38,000 level yesterday, 19 January. With a monthly gain of over 50 per cent, the 30-day balance sheet of the cryptocurrency is still lush.
Where the Bitcoin price will ultimately go is open to speculation. While a survey of investors by Deutsche Bank paints a bearish picture for 2021 – a majority of those surveyed assume that Bitcoin and tech stocks like Tesla will be in bubble territory – Bitcoin observers like Willy Woo are correcting their analyses upwards. On Twitter, Woo raised his forecast for the bitcoin price from USD 100,000 to USD 200,000. And invokes the top cap analysis model.
Uh Oh, $100k price targets too low
Upward movement detected on top cap model. Now on course for $200k minimum.
Woo introduced his experimental metric back in February 2019. In his top-cap model, he multiplies Bitcoin’s average market cap (since 2010) by 35 to find highs for the Bitcoin price. According to Woo, the metric has proven to be accurate, at least retrospectively.
A brief history of BTC tops since the Genius [sic] block. Earliest tops have not hit. Basically, this says that there was a perceived price for BTC before October 2009 when we first established a market price to, we just don’t have data on what it was.
A short history of BTC tops since the Genius Block.
Earliest tops didn’t hit. Basically says there was a perceived price for BTC before Oct 2009 when we first established a market price, we just don’t have data on what that was. pic.twitter.com/V2diFL3xmo
– Willy Woo (@woonomic) January 18, 2021
The stock-to-flow model (S2F) has also provided a fairly accurate metric for ranking the bitcoin price so far. The metric, known from the valuation of commodities, has long since entered the canon of bitcoin bulls.