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How Bitcoin Could Hit $200K on Global Institutional Inflows Alone
Bitcoin’s price surge has been a subject of discussion in the cryptocurrency community recently. The latest report from Kobeissi Letter suggests that institutional capital inflows could drive the asset to unprecedented heights.
According to reports, an estimated 31 trillion dollars worth of institutional assets under management (AUM) resides in the United States alone. If just 1% of this capital were to flow into Bitcoin, it would add $300 billion to its current market capitalization. This, in turn, could drive prices up by approximately 13%, placing the asset at a staggering $133,000.
However, when global institutional AUM is taken into consideration, the potential for further price growth becomes even more substantial. It is predicted that an influx of this magnitude would be capable of driving Bitcoin’s value to nearly $200,000, a figure previously considered unimaginable by many in the cryptocurrency space.
This significant shift in investor interest has been attributed to Bitcoin’s unparalleled 90% compound annual growth rate (CAGR) over the past 13 years. No other asset has been able to match this level of performance, further solidifying its position as an attractive option for institutional investors seeking returns.
As evidence of this increased appetite, we have seen prominent institutions such as BlackRock and Strategy accumulating large amounts of Bitcoin, with these entities alone holding a staggering 6.6% of the entire circulating supply. This is a significant departure from previous periods where institutional investment in Bitcoin was largely non-existent.
Furthermore, it appears that even “conservative” funds are now allocating up to 1% of their assets under management to this increasingly attractive asset class. The momentum behind these developments could lead to further consolidation or even an immediate surge, as the cryptocurrency industry has already started to see a significant shift in institutional participation.
This prediction is not without precedent, however. Many in the space have previously suggested that Bitcoin’s price could reach unprecedented heights due to its potential for long-term growth and diversification benefits, which it offers as a store of value unlike any other asset class.
For those who are new to this space, it is important to note that this forecast does not take into account retail participation.
Source: cryptopotato.com
