Analyst from U.Today believes that BTC will perform better than gold in the long term

U.Today – In a bold prediction, analyst Willy Woo predicts that Bitcoin will surpass gold's market cap once ETFs have fulfilled their role.

According to Woo, the recently launched Bitcoin ETFs bring BTC price targets of $91,000 at the bear market bottom and $650,000 at the bull market high, which could happen once ETF investors fully deploy their capital according to the asset manager's recommendations have.

While excitement over these bold price predictions continues, Woo cautioned that these targets may not be achievable this cycle as capital takes a long time to deploy. He outlines in six points what he sees as back-of-the-envelope calculations to support this prediction.

Woo bases his forecast on the assumption that the $100 trillion under management by asset managers generally has a 2% allocation recommendation. This gives an estimated potential allocation to BTC of around $2 trillion, which he believes could increase over time.

Woo further estimates that BTC currently holds $561,159,959 in investments, citing on-chain data; an inflow of $2 trillion would push the amount to over $2.56 trillion.

Using MVRV to calculate market cap relative to money invested, a ratio that is 5x at bull market highs and 0.7x at bear market lows, the market cap is $12.8 trillion and $1.8 trillion, respectively , which corresponds to a BTC price of $650,000 and $91,000 in bull and bear market scenarios respectively.

Barring other proprietary inflows, Woo believes that Bitcoin could certainly exceed gold capitalization by the time the asset manager's capital is deployed. Given that gold enjoyed a 12-year uptrend following its ETF approval, Bitcoin could follow suit.

At the time of writing, BTC is up 0.49% in the last 24 hours to $64,524. According to Bloomberg, Bitcoin's dominance in the crypto market has hit a three-year high, driven by strong demand for U.S. exchange funds that hold the largest digital asset, as well as a challenging era for smaller tokens.

Bitcoin accounted for about 55% of the $2.4 trillion cryptocurrency market at the end of last week, a level not seen since April 2021, according to data from CoinMarketCap.

This article was originally published on U.Today