A new study on institutional appetite for Bitcoin, and how that may change metrics around the coin’s value, is drawing some attention today.
William Suberg at Cointelegraph reports on the paper by Ark Invest that suggests Bitcoin could soon spiral to half a million dollars per coin if corporate parties get serious about using it as a store of value.
Analysts suggest that with 10% of corporate reserves in Bitcoin instead of cash, traders could expect $500,000 values on the Bitcoin market.
Even a 1% allocation, they say, would double the $40,000 peak that Bitcoin is currently near.
In addition, Ark breaks down the impact of buy-in from pension funds and sovereign wealth funds.
“The findings come as institutional buyers continue to focus on Bitcoin as a long-term alternative to cash, with one transaction in particular drawing attention after $500 million left Coinbase,” Suberg writes. “In terms of the longer-term impact that corporations could have on Bitcoin’s scarcity, ARK forecast that probable allocations would likely far outstrip the 1% level.”
As for catalysts, the Grayscale company is specifically noted in the study – with its Grayscale Bitcoin Trust, the company’s pioneering different kinds of Bitcoin brokerage and the ability for investors to buy in through exchange traded funds.
“Grayscale may provide the spark that reignites the market as soon as Wednesday,” Suberg suggests.
The study by Ark Invest comes from a company with a great track record for predicting markets. Founder Catherine Wood was famously right about Tesla as the company’s stock ballooned over the past year. Ark also offers its own ETFs such as ARKG that trade on these kinds of predictive industry philosophies.
Could it really be true? Could we see massively higher BTC values by summer?
Well, fans of crypto holding have been saying exactly this for months, if not the past few years. Will 2021 be the “Year of Bitcoin?” We’ll see.
