Institutional and corporate investments could drive the price of bitcoin to $ 500,000.
The calculation made by the firm Ark Invest suggests that even small purchases could have a large effect on the price of BTC
Bitcoin (BTC) could reach a price of USD 535,000 to the least if major corporations, institutions and investors make the 10% of its reserves of cash in the biggest cryptocurrency.
This is stated in the recent report by the firm Ark Inves t entitled “Bitcoin: preparing for the institutions” . The report also shows that even an allocation of 1% of the S&P 500 companies would be enough to raise the price of bitcoin above $ 40,000.
Since Bitcoin seems to gain more confidence, some companies are considering it as cash on their balance sheets.
This conclusion from the report comes at a time when institutional buyers continue to focus on Bitcoin as a long-term alternative to cash.
In terms of the longer-term impact that corporations could have on Bitcoin scarcity, Ark predicted that likely allocations would likely well exceed the 1% level:
“Based on daily returns across all asset classes over the past 10 years, our analysis suggests that allocations to bitcoin should range from 2.55% when volatility is minimized to 6.55% when returns are maximized, ” adding that ” based on ARK’s simulated portfolio allocations, allocations Institutional between 2.5% and 6.5% could affect the price of bitcoin and take it to a value between USD 200,000 and USD 500,000 “
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