Bitcoin (BTC) can reach at least $ 535,000 if institutional buyers convert 10% of their cash reserves into the largest cryptocurrency.
ARK: “Bitcoin price can reach $ 535 thousand.”
Investment firm ARK Invest said in its latest report, “Bitcoin: Readiness for Institutions,” that even a 1% allocation from S&P 500 companies would be enough to increase BTC / USD spot prices by $ 40,000.
The findings emerge as institutional buyers continue to focus on Bitcoin as a long-term cash alternative.
The report includes the following statements:
“According to search volumes compared to 2017, Bitcoin’s price increase appears to be less effective than the excitement around it. While Bitcoin seems to be gaining more confidence, some companies see it as cash on their balance sheets.
They can go well beyond 1 percent
In terms of the long-term impact companies can have on Bitcoin’s scarcity, ARK predicts that possible allocations will likely go well beyond the 1% level.
Our analysis based on daily returns across asset classes over the past 10 years suggests that allocations to Bitcoin should change by up to 6.55% while minimizing volatility. Based on ARK’s simulated portfolio allocations, corporate allocations between 2.5% and 6.5% can bring the price of BTC to between $ 200,000 and $ 500,000.
Although the BTC price action has not sustained the bull run convincingly in recent weeks, there is an expectation that the status quo will soon reverse.
Asset management giant Grayscale could provide the spark that reinvigorated the market Wednesday.
“There is a large and emerging group of institutions with a massive capital base reallocated to this space,” Michael Bucella, general partner of investment firm BlockTower Capital, told CNBC this week. said.