The analyst notes that the capital flowing into the pioneering cryptocurrency is similar to that of 2017. At least USD 170 billion flowed into Bitcoin in 2020.
For three months, the price of Bitcoin (BTC) has been on the rise, drawing the steepest bullish curve in the last three years. However, the pioneering cryptocurrency is going through a vigorous cycle that has barely completed an initial phase of optimism. Analyst Willy Woo believes that the true bullish run for BTC is about to begin.
On his Twitter account, Woo recently noted that the amount of capital now flowing into Bitcoin is equivalent to that of April 2017. That previous bullish cycle pushed the price of the principal cryptocurrency on the market close to USD 20,000.
He estimates that this year the capital that came into Bitcoin was at least USD 170 billion. The USD 15 billion in purchases that users made from Black Thursday in March to October reached that amount. Users have invested USD 50 billion in BTC since the beginning of October when the price of the cryptocurrency exceeded USD 11,000. Also, institutional investment reached USD 650 million only with MicroStrategy.
All this investment has grown as the price of the cryptocurrency keeps rising, explains Willy Woo in his posts. According to a Glassnode chart that the analyst shared, a large flow of capital will propel the price towards new all-time highs just like it did in 2017.
Woo based his prediction on his estimate of the capital investment in Bitcoin this year, thus verifying that the current capital flow rate is equivalent to the maximum price that the cryptocurrency recorded in 2017. This appreciation indicates that the value of the crypto asset will gain new momentum from now on.
Willy Woo Believes that Bitcoin’s Price Will Skyrocket
According to the analyst, the current price of the cryptocurrency seems to have puzzled many people, who may interpret it as a speculative bubble. He adds that “few understand that a blockchain allows measuring capital flows accurately and providing answers rather than narratives.”
Bitcoin is currently trading at a price of around USD 28,000, according to data from CoinMarketCap. Even though this is an all-time high for the value of Bitcoin, Woo predicts that the cryptocurrency may never again be so cheap.
Woo forecasts that this cryptocurrency will be worth more than USD 200,000 by December 2021. He even describes this prediction as conservative, stating that he does “not totally exclude the possibility that the price will reach USD 300,000.”
Following the price rally at the end of July, Woo stated that a major bullish run was beginning. Considering that the price of the cryptocurrency rose by more than 40% in December alone, it is possible to say that his prediction was correct.
By Alexander Salazar
