- The world of crypto, and specifically bitcoin, have been going through somewhat of a slump these past few months.
- The price of the leading cryptocurrency has been fluctuating but many enthusiasts and traders have got their hopes set on institutional adoption.
The world of crypto, and specifically bitcoin, have been going through somewhat of a slump these past few months. The price of the leading cryptocurrency has been fluctuating between the $10,000 market and $9000 range but many enthusiasts and traders have got their hopes set on institutional adoption.
Institutional adoption is almost vital for the price of bitcoin to potentially conquer new all-time highs. If institutions don’t get involved in the industry, BTC will only be owned by relatively ‘small’ investors. But talking to this end, Ryan Watkins from Messari crypto research talked about the potential spike in value if institutional investors get involved with bitcoin.
Watkins says that if these organisations opt to allocate at least 1% of their portfolio into bitcoin, it could result in a significant amount of cash floating in and pushing the price of BTC up to $50,000.
What would it look like if institutional investors followed Paul Tudor Jones and allocated a “low single-digit percentage” to #Bitcoin?— Ryan Watkins (@RyanWatkins_) June 23, 2020
Here’s what we found using our best estimates of global inst. investor AUM.
Hundreds of billions if not trillions $ in inflows
Technically, this isn’t an impossible venture. When bitcoin hit $20,000 in 2017, people thought it would never hit such highs again and where as it hasn’t yet, who knows where the limit is?