Bitcoin (BTC) could be worth $91,000 at the bottom of the bear market and $650,000 at the top of the bull cycle upon the full deployment of the cryptocurrency’s exchange-traded funds (ETFs) in the coming years.

According to a tweet by Bitcoin analyst Willy Woo, the digital asset can achieve these price targets if investors fully deploy Bitcoin ETFs according to the recommendations of asset management firms.

Bitcoin’s New Price Targets

To substantiate his claim, the Bitcoin analyst elaborated some calculations based on allocation recommendations, self-custody inflows, and market value to realized value (MVRV), which is the ratio between the market value of BTC and its realized value.

Woo explained that asset managers like Fidelity are advocating for modest crypto portfolio allocations of up to 2%. Such firms manage roughly $100 trillion, which leaves up to $2 trillion to Bitcoin. The number will increase over time as BTC sees more adoption.

Bitcoin currently holds over $561 billion of investment. Adding the $2 trillion will bring the total to $2.56 trillion, significantly enlarging the asset’s ecosystem. The figure could be much more if self-custody inflows are considered. Woo said self-custody inflows are much bigger at the moment; hence, the $2.56 trillion target is a lower-bound estimate.

Exceeding Gold’s Market Cap

Using the MVRV ratio to calculate market capitalizations versus money invested, the target investment figure would be multiplied by five in bull market tops and 0.7 in bear season bottoms. This would leave the crypto market with a capitalization of $12.8 trillion at the top and $1.8 trillion at the bottom, or $91,000 and $650,000 per BTC.

Woo clarified that BTC is not expected to hit the $91,000 and $650,000 targets during this cycle as such capital deployments take a long time. However, Bitcoin will inevitably exceed gold’s market capitalization when ETFs have achieved their full potential.

“These are very conservative numbers. #Bitcoin will beat gold cap when ETFs have completed their role…Bitcoin will certainly exceed Gold capitalization by the time asset manager capital has deployed. Gold went on a 12 year bull run when its ETF was approved, now it’s Bitcoin’s turn,” the Bitcoin analyst stated.

TL;DR

• Polkadot (DOT) remains well in the red on a weekly scale following the latest market decline.
• Nonetheless, some analysts are optimistic about the asset’s potential for significant gains in the near future, adding it to their portfolios.

DOT’s Next Possible Move

Polkadot’s native token—DOT—tumbled severely during the latest market correction. Its price is down 20% on a weekly scale, briefly plunging below $6. However, it started recovering in the past several hours and is currently trading at around $7 (a 7% increase in the last 24 hours).

One popular cryptocurrency trader who touched upon DOT’s recent price turbulence is the X user FLASH. The analyst argued that the asset’s trajectory is “the ugliest ever,” but the trends might soon change for the better.

FLASH assumed that DOT will either continue dropping in the near future or ascend impressively toward the $20 mark. It seems like the trader is rooting for the second option since revealing they “bought the dip.”

#Polkadot $Dot

With that beautiful market structure broken, the ugliest chart i’ve ever seen perhaps! That ugly, i have to delete very soon! Head & Shoulder & ☠️ or … we confirm a bottom around 0.786, confirm bottom of W2, means V and Vol. soon!

Bought the dip! pic.twitter.com/DG2VQdBYAc

— FLASH (@THEFLASHTRADING) April 14, 2024

Another well-known analyst who added Polkadot’s asset to his portfolio is Michael van de Poppe. He recently claimed that the token has “reached a cycle low on the BTC valuation,” maintaining that “fundamental progress is there.”

Previous DOT Predictions

Many other analysts have outlined predictions on the asset recently. Last week, CRYPTOWIZARD suggested that DOT’s value is on the verge of a “volcanic eruption brewing.” They assumed an 80% price increase should the coin overcome the major resistance zone of $9.60.

The crypto content creator Jake Gagain and the X user CryptoYoddha also gave their two cents. The former envisioned an all-time high sometime next year, while the latter forecasted a rise to $20 this summer. 

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Bitcoin’s price may be due for another correction despite a strong recovery from its weekend dump to $61,000, according to analysts at CryptoQuant.

In a community “quicktake” posted on Monday, Bitcoin and Ethereum trader GAAH noted that the prevailing bullish market sentiment may be getting too hot based on information from the perpetual futures market.

Is Bitcoin Still Overheated?

As the analyst noted, average 30-dy funding rates remain high for Bitcoin, even after its latest price dump. Their current level mirrors that during Bitcoin’s 2021 all-time high, which today serves as the digital currency’s “greatest resistance ever.”

“The price is in a defined channel with around 20% expansion/retraction, an ideal scenario for large players to set up large positions,” wrote GAAH.

The last time Bitcoin funding rates were in an equally significant bearish position was in late 2022, when Bitcoin’s price was just 25% of what it is today. Since then, the asset has experienced multiple brief corrections of roughly 20%, though it hasn’t seen a funding premium like today.

The asset’s rapid rise has incentivized many retail investors to start taking profits. The Spent Output Profit Ratio (SOPR) for short-term holders reached levels of “extreme greed” in March, and has only now retreated towards a more neutral position.

“Historically, when there are large retail profit-taking moves, it means a potential top is in the making,” the analyst added. “After the rapid fall in prices over the last two days, there has been a significant outflow of realizations by these holders.”

How To Spot The Next Bottom

Lead Glassnode analyst James Check commented on the same metric on Sunday, claiming its latest break back below a 1.0 ratio is a healthy sign for bulls. He said short-term holders are  disproportionately at a loss compared to long-term holders, and that the market must shake out its weak hands before moving higher.

“SOPR is a metric that benefits contrarians” he advised. “Watch the retest of 1.0, it needs to break above, not find resistance.”

Bitcoin’s crash over the weekend triggered $700 million in liquidations within 24 hours. Many suspect it was sparked by escalating geopolitical tensions between Iran and Israel.