Bitcoin Could Hit $50,000, With Just 1.0% Allocation From Institutions

Crypto research firm Messari has recently estimated that, should institutional investors allocate just 1.0% of their portfolios to Bitcoin, then the most famous cryptocurrency in the world’s market capitalization would rise to above $1 trillion and its price jumps to $50,000. The calculation of the impact of institutions’ investments on the Bitcoin price is an interisting and open question, after recent studies showed how investing low, single-digit percentages into Bitcoin is a rewarding strategy for investors.

Messari went further, showing how just a 1.0% allocation from institutional investors (e.g. endowments and foundations, family offices, sovereign wealth funds, pension funds and mutual funds) would pour around $480 billion into the Bitcoin market.
A research by Chris Burniske found fiat money flows into the crypto market produced price gains of between 2 and 25 times during the 2017 bullish trend. Messari’s study estimates that ‘an aggregate 1.0% institutional allocation to Bitcoin can easily bring Bitcoin’s market capitalization above $1 trillion’. Or its price above $50,000.
The interest of institutional investors seems required for Bitcoin to become a global adopted non-sovereign store of value. Why should this occur? Ryan Radloff, the CEO of multi-billion custodian Kingdom Trust, thinks that the US $28 trillion pension funds market could be the first example of big institutional investor to enter the digital coin market, as clients demand the possibility to add digital assets to their pension funds.

Other analysts believe, instead, that institutions will enter the cryptoinvestment business by increasingly sophisticated and regulator-friendly innovations within the cryptobusiness.

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