Ryan Watkins of Messari – a cryptocurrency research company – predicts that if institutions would only allocate 1% of their assets to buy bitcoin, then BTC’s market capitalization could rise to over $ 1 trillion and its unit price to $ 50,000.
Watkins research was aimed at calculating the institution’s impact on the BTC price. They are based on the example of the well-known hedge fund manager Paul Tudor Jones, who invested a “low one-digit percentage” of his portfolio in bitcoin.
BTC market capitalization of $ 1 trillion
Watkins predictthat a small percentage moved from investment funds and foundations, family businesses, sovereign wealth funds, pension funds and investment funds to BTC will cause $ 480 billion of fresh funds to hit the bitcoin market.
“If institutions transfer 1% of their funds to bitcoin, market capitalization will easily rise to $ 1 trillion and the BTC price to $ 50,000.”
– Ryan Watkins estimated, citing research Chris Burniskea. Burkinsk said that during the bull market in 2017, cash flow from fiats to cryptocurrencies usually led to an increase in bitcoin prices.
Which institutions will be the first to transfer funds to the cryptocurrency market?
Although Watkins believes that “bitcoin may not need an institution to succeed,” he adds, “if Bitcoin is to be adopted on a global scale, a non-state storehouse of value, it will have to somehow convince institutional investors to transfer their assets to digital assets.” Researcher predictthat hedge funds will be the first institutional entities to start investing in cryptocurrencies.
Ryan Radloff, CEO of the Kingdom Trust multibillion trust fund, has a different opinion. He claims that as the first allocation will begin, worth $ 28 trillion, the US pension sector. He argues that consumers are already demanding the option of paying in digital assets to their pension funds.
Other analysts believe that institutions will be persuaded to invest in cryptocurrencies, thanks to increasingly friendly regulatory innovations in the digital asset industry. Jay Fraser from BOX Digital Markets claims that institutional entities will be strongly involved in the emerging security tokens sector.