Willy Woo, a prominent on-chain analyst, shared his insights on the decline of Bitcoin's CAGR since 2020, highlighting its transition to a more sustainable growth model.
Declining Bitcoin CAGR
Woo notes that Bitcoin’s Compound Annual Growth Rate (CAGR) has dramatically reduced since 2020, aligning with increased institutional adoption. The shift from over 100% CAGR to 30-40% suggests a maturing market.
Impact of Institutional Investments
According to Woo, the growing presence of institutional investors significantly influences market dynamics. He predicts a market cap of $10-$50 trillion for Bitcoin within 10 years, driven by mainstream acceptance. The introduction of spot Bitcoin ETFs in the U.S. has further validated Bitcoin as an institutional asset.
Future of Bitcoin and Its Potential
Woo suggests that Bitcoin's potential growth to a $50 trillion market cap could impact traditional investment models. The projected user growth to 1 billion by 2025 may redefine market dynamics. The slowing CAGR indicates a shift from speculative to sustainable investment, aligning with historical market trends during periods of increased institutional influence.
Willy Woo's insights emphasize the importance of institutional adoption for the stability and future growth of Bitcoin as an asset. Predictions regarding Bitcoin's future reflect its potential role in financial systems.
