Prominent on-chain analyst Willy Woo suggests that Bitcoin (BTC) has the potential to experience a remarkable price increase of 10 times its current value, given a specific condition. Woo, who enjoys a substantial following of one million users on Twitter, explains that if eight institutions, all of which have varying degrees of involvement in blockchain and tokenization, allocate 5% of their assets under management (AUM) to Bitcoin, the cryptocurrency could reach an impressive price point of approximately $310,000.
“What would price do if these guys put 5% of AUM into BTC?
My calculations estimate around ~$310,000 per coin.”
According to Woo, the price of BTC has the potential to reach as high as $398,000, although its actual value would be contingent on the timing of capital deployment. He explains that the price range would vary between $128,000 and $398,000, depending on whether the institutions invest during a bearish or bullish market phase. Presently, the estimated price stands at $310,000. Woo’s methodology involves comparing the increase in market capitalization with the increase in realized capitalization.
Woo’s remarks come in the wake of BlackRock and Fidelity’s applications for a Bitcoin exchange-traded fund (ETF), which reportedly fell short of the expectations set by the U.S. Securities and Exchange Commission (SEC).
The U.S. Securities and Exchange Commission (SEC) has reportedly expressed concerns regarding the applications submitted by BlackRock and Fidelity for a Bitcoin exchange-traded fund (ETF), stating that they lack clarity and comprehensiveness.
According to a recent report from The Wall Street Journal, the SEC informed Nasdaq and the Chicago Board Options Exchange (CBOE), who submitted the applications on behalf of the firms, that the filings were inadequate. The regulatory agency returned the applications due to their failure to specify the name of the Bitcoin ETF associated with the expected surveillance agreement, as well as their lack of information regarding the functioning of the surveillance agreement.
Woo’s Bitcoin Chart
The regulatory agency, the U.S. Securities and Exchange Commission (SEC), rejected the filings as they did not include the specific name of the Bitcoin exchange-traded fund (ETF) with which a surveillance agreement was expected, nor did they provide sufficient information regarding the workings of the surveillance agreement.
Senior ETF analyst at Bloomberg, Eric Balchunas, views the SEC’s response as potentially positive. He explains that the SEC’s request for the inclusion of the “crypto exchange” name and more comprehensive details on the surveillance agreement is understandable and can be considered good news. Balchunas had initially expected that these aspects would need to be updated as well.