Bitcoin Price Surge Fuelled by Institutional Investors: Market Impact of Global Capital Influx Discussed

Bitcoin’s remarkable price surge has been driven largely by institutional investors, and analysts believe that if even a fraction of global institutional capital flows into the asset, it could push prices up to a staggering $200,000.

The argument is based on Bitcoin’s extraordinary 90% compound annual growth rate (CAGR) over the past 13 years, which is unmatched by any other asset. As a result, institutional investors are increasingly turning their attention to the cryptocurrency, with firms like BlackRock and Strategy accumulating significant amounts of BTC.

In fact, these two entities alone hold an astonishing 6.6% of the entire circulating supply, currently valued at $155 billion. This trend is likely to continue as more institutional Bitcoin funds are launched, and corporations and nation-states stack the asset for their treasuries.

Even if just a small percentage of global institutional capital flows into Bitcoin, it could have a significant impact on prices. According to estimates, there is approximately $31 trillion in institutional assets under management (AUM) in the United States alone. If even 1% of this amount were to flow into BTC, it would drive another $300 billion into the asset.

At current market capitalization levels, this influx would push Bitcoin’s price up by around 13%, placing it at a staggering $133,000. However, if global institutional AUM were taken into account, the potential for growth is far more significant. The scenario outlined above could potentially drive a further $1 trillion into the asset.

At $2.34 trillion in market capitalization, this influx would result in a 70% increase in value, placing Bitcoin’s price at an eye-watering $200,000.

Source: cryptopotato.com