Bitcoin Could Go to $398,000 After BlackRock ETF, Analyst Says

Speculation has been brewing in the world of cryptocurrency ever since BlackRock submitted its most recent application for a Bitcoin Exchange-Traded Fund (ETF). The action has sparked a discussion among market watchers about the possible entry of large institutions into the Bitcoin space.

The largest U.S asset managers, which also includes Fidelity, JPMorgan and Goldman Sachs control an impressive total of over $27 trillion in assets.  As the conversation heats up, many are beginning to wonder: what would happen to the price of Bitcoin if even a small fraction, say 5%, of these managed assets were directed towards it? Popular on-chain analyst Willy Woo stepped into this Twitter-based debate to offer his expert insight.

Woo’s prediction wasn’t straightforward. He emphasized the crucial factor of market phase at the time of asset redirection. Whether the market is in a bearish or bullish phase would significantly impact the final outcome. However, he estimated a price range between $128,000 – $398,000 per Bitcoin. At the time of his statement based on analysis and methodology, his expected price was at $310,000. His methodology involved comparing increases in market cap against the realized cap.

The Complexities of Asset Management

Woo’s statement prompted reactions from other market analysts, leading to a deeper exploration of the complexities of asset management. One individual pointed out that organizations like BlackRock can’t arbitrarily decide to channel a portion of their assets under management (AUM) into Bitcoin. After all, they handle investors’ money, and investment decisions ultimately lie in the investors’ hands.

In response to this, Woo offered a nuanced viewpoint. He pointed out that wealth management can be split into two categories. Some investments are investor-driven, while others are decided by the wealth manager. So, it is a blend of both parties’ decisions. Hence, while BlackRock and other asset managers can’t unilaterally move a portion of their AUM into Bitcoin, they still possess some degree of discretion.