Ryan Watkins, a Messari researcher, analyzed the numbers and predicted that if institutions only invest 1% of their assets in Bitcoin, BTC market value could rise to over $ 1 trillion.
Watkins’ research sought Then calculate the impact of institutions on the price of BTC the example of the famous hedge fund manager Paul Tudor Jones, who invests a “low single-digit percentage” in Bitcoin.
The price could be up to $ 50,000
He Investigators predicts that a small allowance of donations and foundations, family offices, foundation funds, pension funds and investment funds for BTC It would generate about $ 480 billion in new money entering the Bitcoin market.
Quotes the crypto expert’s research, Chris Burniske, WHO discovered that Fiat flows generally lead to price gains Watkins estimates that “an institutional 1% allocation to Bitcoin between 2 and 25 times during the 2017 uptrend could increase Bitcoin’s market value slightly above $ 1 trillion or more than $ 50,000 per BTC.”
Estimated impact of 1% institutional allocation of BTC on the market value of Bitcoin: Messari
Which institutions will lead the adoption?
While Watkins believes that “Bitcoin may not need to reach the institutional scale to be successful,” he says, “Bitcoin, if it becomes a globally recognized non-governmental store of value, must convince institutional investors to change their values . ” Millions of BTC. “
Watkins predicted as Hedge funds bear the institutional burden on the cryptocurrency, but Ryan Radloff, CEO of the multi-million dollar Kingdom Trust fund, predicted that the $ 28 billion retirement sector in the United States will be the first to movebecause consumers are demanding the ability to assign digital assets to their retirement portfolios.
Other analysts believe that Institutions are involved thanks to ever more sophisticated and friendly innovations Jay Fraser from BOX Digital Markets predicts a significant institutional commitment to the emerging security token sector.