Bitcoin

Messari: If institutions switch 1% of their assets to Bitcoin, the price could go up to $50,000

Ryan Watkins, a Messari researcher, analyzed the numbers and predicts that if institutions invest just 1% of their assets in Bitcoin, the market value of BTC could rise to more than $1 trillion.

Watkins‘ research sought to calculate the institutions‘ impact on BTC’s price, following the example of famed hedge fund manager Paul Tudor Jones, of investing a „low single-digit percentage“ in Bitcoin.

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The price could go up to $50,000
The researcher predicts that a small allocation of grants and foundations, family offices, endowments, pension funds and mutual funds to BTC would generate approximately $480 billion in new money entering the Bitcoin market.

Citing research by crypto expert Chris Burniske, who found that fiat flows generally lead to price gains of between two and 25 times during the 2017 uptrend, Watkins estimates that „a 1% institutional allocation in Bitcoin could easily raise the market value of Bitcoin above $1 trillion, or more than $50,000 per BTC.

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Which institutions will lead the adoption?
While Watkins believes that „Bitcoin Rush may not need to go to the institutional level to be successful,“ he says that „if Bitcoin becomes a globally adopted non-sovereign reserve of value, institutional investors will need to be convinced to shift their millions to BTC.

Watkins predicted that hedge funds will carry the institutional burden of cryptomoney, but Ryan Radloff, CEO of the multi-billion dollar Kingdom Trust, predicted that the $28 trillion U.S. retirement sector will be the first to move, as consumers demand the ability to allocate digital assets to their retirement portfolios.

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Other analysts believe that institutions will come on board thanks to increasingly sophisticated and regulatory friendly innovations in the crypto industry, with BOX Digital Markets‘ Jay Fraser predicting significant institutional involvement with the emerging security token sector.