Messari’s Ryan Watkins predicts that if institutions allocate just 1% of their portfolios to Bitcoin, the BTC’s total market cap could rise to above $1 trillion,
Watkins’ research sought to calculate the impact on the Bitcoin price of institutions following the famed hedge fund manager Paul Tudor Jones’ who is a well known example of investing a “low single-digit percentage” into the Bitcoin.
$50,000 USD Per Bitcoin Price Predicted
The researcher predicted that even a small percentage allocation from endowments & foundations, family offices, sovereign wealth funds, pension funds, & mutual funds to Bitcoin [BTC] would end in around $480 Bln in money entering into the Bitcoin ecosystem.
Moreover, as per the research cited by crypto researcher Chris Burniske reveals that the fiat flows into crypto will typically drive price gains of between 2x and 25x times during the 2017 bull trend, Watkins estimates that “an aggregate 1% institutional allocation to Bitcoin can easily bring Bitcoin’s market cap above $1 trillion, or a price above $50,000 USD per BTC”.
Bitcoin Might Not Even Need Institutions To Succeed
While Watkins believes that “Bitcoin might not need institutions to succeed” he added that “if Bitcoin is to become a globally adopted non-sovereign store of worth, it’ll got to convince institutional investors to transfer wealth into the asset.”
Watkins predicts that hedge funds will lead the institutional charge into crypto assets, however Ryan Radloff, the CEO of multi-billion custodian Kingdom Trust predicts that the $28 trillion United States retirement sector are going to be the first-mover as consumers demand the power to allocate digital assets toward their retirement portfolios.
On the another hand, other analysts suggest that institutions are going to be brought into the fold by increasingly sophisticated and regulator-friendly innovations within the crypto industries, with BOX Digital Markets’ Jay Fraser predicting significant institutional engagement with the emerging STO sector [Security Token Offering].