Arman Shirinyan
Bitcoin could soar to unprecedented levels if institutions invest at least 5% of their AUM
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Noted cryptocurrency analyst Willy Woo recently speculated that the price of Bitcoin could reach around $310,000 per coin under certain market conditions. His calculation is based on the assumption that institutional players such as BlackRock, Fidelity, JPMorgan, Goldman Sachs, BNY Mellon, Invesco and Bank of America could decide to invest 5% of their assets under management (AUM) in Bitcoin.
Further elaborating on his theory, Woo stated that the potential increase in Bitcoin’s market cap coupled with the increase in the realized cap would pave the way for such a price increase. However, he also emphasized that the timing of these institutional investments would have a significant impact on Bitcoin’s price development.
“The $310,000 per bitcoin estimate really depends on whether these institutional players make their investments during a down or up phase of the market,” explained Woo. In a bearish phase, we could see Bitcoin falling to around $128,000, but in a bullish case, BTC should rally to almost $400,000.
These figures were met with some skepticism, particularly in light of the assumption that these institutions could simply choose to invest a percentage of their AUM in bitcoin. In response to these concerns, Woo clarified that his answer was hypothetical to a user’s question.
“It’s not that simple,” Woo said. He explained and emphasized that asset allocation decisions are not made solely by these institutions. They act as custodians of their clients’ funds and the investment decisions ultimately rest with the clients themselves.
He further explained that wealth management can be divided into two categories: those driven by investor decisions and those left to the discretion of the wealth manager. Therefore, any significant entry into Bitcoin would likely require investor approval from those institutions.
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