#CAGR

Willy Woo Explains Why $BTC CAGR Will Drop In the Next Decade

Prominent analyst Willy Woo has offered insights into Bitcoin’s Compound Annual Growth Rate (CAGR), highlighting a shift in its growth dynamics over recent years. Woo explained that Bitcoin’s explosive growth phases, like the 100%-plus CAGR seen before 2017, are now part of its history.

Woo further stated that 202 was a pivotal year as it became institutionalized, and corporations and sovereign entities began to accumulate the assets. Furthermore, with the arrival of spot BTC ETFs in January 2024, institutional exposure to BTC has shot up significantly. BlackRock’s iShares Bitcoin Trust (IBIT) has seen massive inflows of over $45 billion since its inception, making it the top-ranking ETF in the market.

This institutional adoption, however, coincided with a drop in CAGR from over 100% to the 30-40% range, which continues to trend downward as $BTC evolves into a macro asset. Willy Woo added that BTC is the first new global macro asset in 150 years, explaining that it will steadily absorb capital until reaching equilibrium.