Bitcoin remains volatile at spot rates. Despite a spectacular rally yesterday, August 1, the downtrend continues, at least for now. Specifically, looking at the candlestick pattern on the daily chart, there could be a bigger rally as prices cross $70,000.
Ahead of this, traders are closely monitoring the price action, aware that there could be further losses that could take the coin below $60,000. Amidst this, some analysts are hopeful about the long-term outlook, ignoring the short-term price volatility.
Bitcoin remains bullish despite recent price declines
In a post on X, Willy Woo, an on-chain analyst, he said that while bears may take advantage in the brief to medium term, unwinding the gains and progress made in the first half of the year, in the longer term the path of least resistance will continue to be north.
As on-chain data reveals increased movement among long-term holders (LTH), the coins’ shift to top exchanges could put more pressure on prices. Still, Woo believes Bitcoin could range from $700,000 at the low end to as much as $24 million in the coming years, assuming it finds maximum adoption.
The analyst said that this bullish forecast is primarily based on the bullish assumption that Bitcoin will capture between 3% and 100% of the global wealth, which is over $500 trillion. Woo says that the lower limit, 3%, is the upper limit of the recommended exposure set by Fidelity for institutions looking to invest in the world’s most valuable coin.
If most institutions allocate just 3% of their portfolio to Bitcoin via derivatives as a spot ETF, the probability of the coin rising to $700,000 is high. On the other hand, assuming that everyone decides to move their wealth to Bitcoin, getting rid of their current established wallets and choosing BTC, then the coin will explode to $24 million. This assumption is, even according to Woo, improbable, but it cannot be discounted.
BTC is Transforming, Spot ETFs Are Key to Growth
Woo, in a post on X, said that at spot rates, Bitcoin is in a transition period. Looking at the adoption charts, the coin is moving from early to tardy majority adoption. Although it is in its early stages, a successful, velvety evolution will be crucial for further price growth.
A key factor and catalyst for adoption at this essential stage will be the adoption of spot Bitcoin ETFs. Since the approval of this derivative product by the US Securities and Exchange Commission (SEC), one analyst select direct correlation between bullish swings and spot ETF inflows. For this reason, how institutions view BTC and allocate funds will be crucial.
