{"id":4931,"date":"2020-10-08T17:00:58","date_gmt":"2020-10-08T17:00:58","guid":{"rendered":"https:\/\/www.newsbtc.com\/?p=445839"},"modified":"2020-10-13T08:01:07","modified_gmt":"2020-10-13T08:01:07","slug":"bitcoin-to-push1-trillion-market-cap","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/bitcoin-to-push1-trillion-market-cap\/","title":{"rendered":"Analyst: Sidelined Capital Enough To Push Bitcoin To $1 Trillion Market Cap"},"content":{"rendered":"

Bitcoin price is currently trading at just above $10,900<\/a>, but it may not be doing so for much longer. As the cryptocurrency continues to build a bullish fundamental base, one crypto analyst claims there\u2019s enough capital sidelined in crypto to push Bitcoin to a $1 trillion market cap\u00a0\u00a0<\/p>\n

If and when this happens, they claim, the leading crypto asset will finally be considered a \u201cmajor asset bucket\u201d for wealth to pour into. It\u2019ll also take the price per BTC to incredible heights.<\/p>\n

Willy Woo: Bitcoin’s $1 Trillion Market Cap Will Bring Bitcoin Visibility As \u201cMajor Asset\u201d<\/h2>\n

Bitcoin is the largest cryptocurrency by market cap and the most dominant in the space<\/a>. It is currently trading at roughly $10,900 at the time of this writing, bringing the asset\u2019s total market capitalization to right around $200 billion.<\/p>\n

The $200 billion represents nearly 60% of the total cryptocurrency market\u2019s $340 billion in capitalization across all coins, BTC included.<\/p>\n

Related Reading | Analyst: The Next Bitcoin Break Will Set The Stage For Weeks To Come<\/a><\/em><\/strong><\/p>\n

However, according to Bitcoin fundamental analyst Willy Woo<\/a>, that market cap would be $1 trillion if only $25 billion worth of capital comes in.<\/p>\n

Woo, who has developed a number of network health indicators used to apply a realistic valuation to Bitcoin price, claims at that market cap, it would bring the cryptocurrency \u201cvisibility as a major asset bucket.\u201d<\/p>\n

At that market cap, institutional investors that have been slow to consider cryptocurrencies could finally begin to take notice. But more importantly, for market participants now, is the fact that such a market cap would take Bitcoin to a price of $54,000 per BTC.<\/p>\n

And according to the analyst, there\u2019s plenty of capital just sitting on the sidelines<\/a> that will take the top cryptocurrency there soon enough.<\/p>\n

\"bitcoin<\/p>\n

BTCUSD Weekly $1 Trillion Market Cap Possible By August 2021 If Previous Trajectory Is Followed | Source: TradingView<\/a><\/pre>\n
Sidelined Stablecoins, Fresh FOMO Could Take Capitalization To Target By Mid-2021<\/h2>\n
Each cryptocurrency\u2019s market cap is equal to the sum of circulating supply \u2013 in this case, 18,511,000 BTC \u2013 multiplied by the current price traded. At $10,900, the crypto asset\u2019s market cap is roughly $200 billion. At five times that market cap, taking the total to over $1 trillion, Bitcoin price would also 5x.<\/p>\n
At the current supply that equates to $54,000 per BTC. If the leading cryptocurrency by market cap follows the same trajectory<\/a> as the last cycle, it would reach such valuation by August 2021.<\/p>\n
Woo says that to add $800 billion to Bitcoin\u2019s market cap, it would only $25 billion in capital. The solution to that unusual equation involves liquidity and supply and demand<\/a>, and two out of three of those are low currently.<\/p>\n
Related Reading | Bitcoin Price Has \u201c12 Weeks\u201d Left To Validate Four-Year-Cycle Theory<\/a><\/strong><\/em><\/p>\n
Woo also points to the over $18 billion in stablecoins backed by real assets and capital, that\u2019s currently sidelined<\/a> that could find its way into Bitcoin as a catalyst that could quickly take the market cap to $1 trillion and beyond.<\/p>\n
Fresh money coming in could make up the remaining $7 million, especially when corporations like MicroStrategy, and now Square, are buying BTC in bulk.<\/p>\n
If Woo is right, the raging bull is suggesting that all it will take is a little FOMO, and that capital will flood into BTC and drive Bitcoin to that market cap in no time at all.<\/p>\n
Featured image from Deposit Photos, Charts from TradingView<\/pre>\n\n\n
For more updates in the crypto world , visit Buyucoin’s  crypto labs blogs !<\/p>\n\n\n\n