Bitcoin ETF

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The Bitcoin price could ultimately reach up to $700,000 per coin, provided financial institutions continue bolstering the adoption curve of the world’s first cryptocurrency
Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) could reach an “ultimate price” of over $700,000, based on an assumed 3% portfolio allocation, according to popular Bitcoin analyst Willy Woo, who <a href="https://x.com/woonomic/status/1818895018205012057" target="_blank" rel="noopener nofollow">wrote</a> in an Aug. 1 X post: 
<blockquote data-ct-non-breakable="true">
 “BTC, even in this early phase of an asset class, Fidelity recommends 1-3% allocation, while we have seen numbers as high as 85% from BlackRock. If we assume 3% as a sensible allocation then the lower bound of valuation is $700k.”
</blockquote>
Bitcoin’s growing price is attracting more institutional investors with large amounts of capital, which could significantly contribute to its price appreciation. Bitcoin price could be on track to reach a new all-time high by September, based on historical chart patterns.
Related: <a href="https://cointelegraph.com/news/us-debt-bitcoin-adoption-hard-money">$35T US national debt could bolster Bitcoin’s adoption as ‘hard money’</a>
<h2 data-ct-non-breakable="true" id="bitcoin-adoption-first-needs-to-cross-above-the-16-threshold">Bitcoin adoption first needs to cross above the 16% threshold</h2>
Woo’s calculations are based on the value of all global wealth assets, worth over $500 trillion.
However, for Bitcoin to reach its ultimate price, the adoption curve needs to surpass the 16% threshold, according to Woo:
<blockquote data-ct-non-breakable="true">
 “16% is the early majority, 50% is the late majority. Wealth management is somewhere in this sector. So figure out when BTC adoption enters 16%-50% world adoption based on the yellow line.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/249343d5-3989-4815-ad52-05748e8cd524.jpeg" alt="Bitcoin’s ‘ultimate price’ could surpass $700K based on 3% portfolio allocation — Analyst" title="">
 <figcaption style="text-align: center;">
 BTC adoption s-curve. Source: Willy Woo
 </figcaption>
</figure>
It took Bitcoin over 15 years to be adopted by 4.7% of the world’s population as of Aug. 1. Yet, Bitcoin’s adoption rate could see an acceleration if it follows the path of the internet’s adoption, which saw a significant uptick after the first 15 years.
Related: <a href="https://cointelegraph.com/news/bitcoin-gold-price-breakout-macroeconomic-improvement">Bitcoin, gold on track to break out as ‘macro summer’ begins — Analyst</a>
<h3 data-ct-non-breakable="true" id="bitcoin-still-needs-to-reclaim-its-old-all-time-high">Bitcoin still needs to reclaim its old all-time high</h3>
Despite the optimistic predictions, the Bitcoin price is still 12% away from its March 14 all-time high of $73,750.
The Bitcoin price rose 2.9% during the past month to trade at $64,465 as of 9:51 am UTC on Aug. 1, <a href="https://www.tradingview.com/chart/3Z94myyP/?symbol=BITSTAMP%3ABTCUSD" target="_blank" rel="noopener nofollow">according</a> to Bitstamp data.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/6b5d5004-6c63-4343-bf31-2214860dc3bd.png" alt="Bitcoin’s ‘ultimate price’ could surpass $700K based on 3% portfolio allocation — Analyst" title="">
 <figcaption style="text-align: center;">
 BTC/USD, one-day chart. Source: TradingView
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Slowing inflows to the United States-based spot Bitcoin <a href="https://cointelegraph.com/learn/different-types-of-etfs">exchange-traded funds (ETFs)</a> could be the main reason why Bitcoin is struggling to gain momentum.
The US ETFs only amassed a cumulative $300,000 worth of Bitcoin on July 31, while they saw over $18.3 million worth of cumulative net outflows on July 30, <a href="https://farside.co.uk/?p=997" target="_blank" rel="noopener nofollow">according</a> to Farside Investors data.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/334e64e2-cddf-4da6-9a29-e307c461fab3.png" alt="Bitcoin’s ‘ultimate price’ could surpass $700K based on 3% portfolio allocation — Analyst" title="">
 <figcaption style="text-align: center;">
 Bitcoin ETF flow table (US dollars million). Source: Farside Investors
 </figcaption>
</figure>
<a href="https://cointelegraph.com/explained/what-are-etf-fund-flows-and-why-do-they-matter">ETF inflows</a> can significantly contribute to a cryptocurrency’s price appreciation. For Bitcoin, ETFs had accounted for about <a href="https://cointelegraph.com/news/bitcoin-etfs-about-75-new-investment">75% of new investment</a> in the world’s largest cryptocurrency by Feb. 15 as it surpassed the $50,000 mark.
Adding to the optimistic outlook, <a href="https://cointelegraph.com/news/bitcoin-75-percent-short-term-holders-profit-67k">over 75% of Bitcoin’s short-term holders</a> were in profit as of July 24. This could translate into more upward momentum for BTC since the short–term cohort is often used to gauge retail demand for Bitcoin.
Magazine: <a href="https://cointelegraph.com/magazine/donald-trump-bitcoin-spot-ether-etf-debut-trading-hodlers-digest-cointelegraph-magazine/">Trump’s Bitcoin push, spot Ether ETF debut, and more: Hodlers Digest, July 21-27</a>

Bitcoin’s ‘ultimate price’ could surpass $700K based on 3% portfolio allocation — Analyst

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Cointelegraph

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