Are the days of exponential growth for Bitcoin over? The analyst shares profit forecasts.

Famous cryptocurrency analyst Willy Woo has shared an interesting analysis of the annual compound annual growth rate (CAGR) of Bitcoin (BTC). Woo notes that investors have unrealistic expectations about BTC and points out the changes that have occurred over the past few years. Woo shared on social media, “Everyone sees BTC as a forever appreciating asset. However, the CAGR chart is actually very clear.” Woo, who reiterated that Bitcoin’s annual returns exceeded 100% in 2017, argued that this phase is now over.

Analysts assess that 2020 was a turning point. Saying that this year is the period when Bitcoin is accepted by institutional investors and even some states, Woo stated that with this institutionalization, the annual compounded returns have dropped to 30-40% and this rate continues to decrease over time. “Bitcoin is currently being traded as the latest macro asset in the past 150 years,” Woo said, adding that this network will see lower returns when holding more capital. In the long run, analysts, noting that the money supply growth is about 5% and global GDP growth is about 3%, predict that Bitcoin’s annual compound returns will eventually stabilize at around 8%. However, Woo stated that this process could take 15-20 years, also adding that the performance of BTC remains unmatched compared to other public investment products in the long term up to this point.