Messari, a crypto analytics firm, estimates that the price of Bitcoin could reach $50,000 if institutional investors allocate just about 1% of their portfolio into the king coin.
In an article written by Ryan Watkins, a research analyst at Messari, the market cap of Bitcoin could top $1 trillion with a hedge fund allocation of just 1%. He believes only institutions could make huge investments that would increase the market cap. According to him:
“Institutional investors are the white whales of cryptocurrency. Ever so elusive, institutional investment in cryptocurrency has long been considered the most significant barrier between Bitcoin and a multi-trillion dollar market capitalization.”
Watkins’ research is based on Paul Tudor Jones’ crypto investment model. Last month in May, the billionaire hedge fund manager revealed that he held nearly 2% of his assets in Bitcoins. Within 24-hours of his revelation, Bitcoin price went from $8,100 to $9,150, a move that theoretically supports Watkin’s prediction.
Watkins sampled institutions from five sectors including pension funds, endowments & foundations, mutual funds. A 1% allocation, he believes, could pump up to $480 billion into the king coin’s market.
Watkins concluded by suggesting that for Bitcoin to increase its position and value globally, institutions need to allocate a chunk of their portfolio into the cryptocurrency.
Image Credits: Pixabay
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