Bitcoin price at $100,000 is overly conservative, says on-chain analyst Willy Woo

  • On-chain analyst makes bold Bitcoin price prediction for 2021.
  • Increasing institutional interest and supply constraints expected to fuel a new BTC rally.

In a podcast titled 'What Bitcoin Did' earlier in the week, on-chain analyst Willy Woo argued that $100,000 for Bitcoin would be an overly conservative target and named $200,000 a "sweet spot."

Changing investor profile

Regarding 2019's bull run from $4,000 to $14,000 in a matter of months, Woo noted that the fundamental investment flow didn't support that upsurge and said that it took a while for the price to bottom out in 2020. The broad-based asset liquidation amid the coronavirus outbreak also played a major role in 2020's slump, according to the analyst.

However, Woo further explained that the on-chain metrics revealed that not a lot of coins in the spot markets were sold off during that period and said that Bitcoin became extremely cheap and became a safe-haven.

Following the COVID-19-inspired decline, the low price and the increased liquidity in the market attracted long term investors and caused Bitcoin inventory at spot exchanges to drop after a two-year-long uptrend, Woo explained.

Possible Bitcoin supply shock in 2021

In an article published on his website in late October, "while there was a scary momentary collapse of price to $3,800 it was caused by a cascade of speculative long positions being liquidated on derivative exchanges by short term traders," Woo wrote. "Meanwhile investors were accumulating bitcoins from spot exchanges at a scale that has never been seen before, shrugging off any ideas that BTC isn't an inflationary hedge or safe-haven asset."

Previewing 2021's possible price action, Woo stated that he expects short-term speculators to book their profits by late January and sees the price moving sideways for a short period after that. The on-chain analyst thinks that a supply shock will follow with heightened institutional interest and it will take an increase of $500,000 in market cap to lift BTC to $100,000. From that point on, the lack of supply is expected to cause the price to continue to increase exponentially.

"I would rate $200,000 upwards as a sweet spot. $300,000 not out of the question, and I do not ridicule $1,000,000,” Woo concluded.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Dogecoin: DOGE on the verge of a 75% lift-off

Dogecoin price breaks out of a bull flag pattern after surging 20%. DOGE could surge 75% to $0.095 if it bounces from the 50% Fibonacci retracement level at $0.055. A bearish outcome could evolve if the price re-enters the “flag” and starts consolidation.

More Dogecoin News

Bitcoin price ready for another upswing as the Fed publishes new preconditions for a digital dollar

The Fed will be looking for stakeholder interest and buy-in to support the launch of a CBDC. The US is still a long way to develop a digital dollar because many structures are not yet in place.

More Bitcoin news

Solana: SOL could take a breather and pullback 30% after a 600% bull rally

SOL price has been on an uptrend since Jan 22 with only minor corrections. SOL was surprisingly unbothered during the market crash on Feb 22 and 23, as it dropped by a mere 13%.

More cryptocurrencies news

Ethereum: ETH building overhead pressure threatens losses to $1,200

Ethereum’s recovery stalls at $1,700, opening the door to the ongoing bearish pressure. The IOMAP reveals the presence of intense selling pressure ahead of Ether.

More Ethereum news


Bitcoin Weekly Forecast: BTC journey to $100,000 might be easier than expected

This past week has been extremely beneficial for Bitcoin which jumped by 30% since Monday 8. Several positive announcements, especially Tesla purchasing $1.5 billion worth of the digital asset propelled the flagship cryptocurrency to new highs.

Read the weekly forecast