The Key to Bitcoin’s $1 Trillion Market Cap
According to an article by Forbes, Bitcoin could see its market cap grow from its current $169 billion, to $1 trillion with just a 1% shift of Wall Street’s institutional investments.
Paul Tudor Jones who manages a grand total of $7 billion in assets, and known as one of the investment giants of today recently allocated 1% percent of his entire fund into Bitcoin to serve as a hedge against inflation. During unprecedent times and stimulus measures being imposed, Jones foresees it as a safe–haven for protecting the value of the funds being managed.
A researcher from crypto research firm, Messari concluded that Bitcoin could easily surpass the $1 trillion mark as he sees institutional investors as the major hurdle between Bitcoin and a multi-trillion dollar market capitalization.
Image Source: Financial Times
During the last expected involvement of institutional investing in the late 2017, Bitcoin saw one of its greatest bull runs from approximately $1,500 to almost breaching $20,000. According to a fellow researcher, Chris Burniske, a significant inflow into crypto usually results between X2 and X25 times price gains based on the 2017 bull trend.
With that sentiment in mind, Watkins of Messari foresees Bitcoin prices to trade at $50,000 or $1 trillion market cap from just an aggregate 1% institutional allocation. Among the expected first movers would be, the United States retirement fund industry. The $28 trillion industry would concede to the demands of its consumers to allocate crypto towards their retirement portfolio according to multi-billion custodian Kingdom Trust’s CEO, Ryan Radloff. He believes the first wave would come from the 7.1 million Americans who are existing Bitcoin owners and realize that they can hold BTC in their retirement accounts for the future.
Unlike 2017, where Bitcoin was merely in its first wave and being discovered and scrutinized by the rest of the financial industry for its financial merit, 2020 has a far more developed playing field with the financial markets having licensed some aspects of the cryptocurrency markets.
With Paul Tudor Jones kicking off the potential move of the institutional investors swinging into the realm of crypto as a hedge or potential investment gains, the market has the potential to start building and enjoy price points with multiples of X25 or maybe even more. As the research shows, a 1% shift could turn the market into a trillion dollar market cap.
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