On Chain Analyst Willy Woo Forecasts Bitcoin’s ETF Approval Impact

Popular on-chain analyst Willy Woo recently shared insights on Twitter about Bitcoin’s promising future, especially in light of potential ETF approvals in 2024. He outlined several interesting scenarios:

He regards the changes in Bitcoin’s realized cap, which tracks the capital stored in the Bitcoin network, as one of his favorite on-chain metrics. Currently, there’s a noticeable increase in capital inflow into the network.

On the brink of the BTC spot ETF’s introduction, the analyst foresees a significant shift in Bitcoin’s role in wealth management. He predicts that when Bitcoin becomes a standard part of wealth portfolios, the top 1% of wealthy individuals will own an average of 0.87 BTC, highlighting the digital currency’s scarcity. This estimation is based on a 5% allocation assumption.

In response to a query from a private banker about potential Bitcoin prices, Woo provided some “back of the envelope” estimates using 2023 data:

• If Bitcoin’s market cap reaches that of gold, the price could soar to $710k per Bitcoin.
• Should 5% of all wealth be invested in Bitcoin, its price might hit $1.1 million.
• In an extreme case where half of all wealth is in Bitcoin, the upper bound price could reach a staggering $11.5 million.

The possibility of 5% of all wealth being invested in Bitcoin isn’t far-fetched. Currently, there are around 600 million adults with a net worth over $100k, controlling 85% of all wealth. With over 300 million investors already in Bitcoin and the number growing rapidly, this scenario is becoming more plausible.