How Bitcoin Could Surge 500% Amid Rising Institutional Adoption

An increasing amount of Bitcoin is being accumulated by institutions. This much was made clear on Tuesday, when Stone Ridge Asset Management revealed to Forbes that it had picked up 10,000 BTC, representing one percent of its assets under management.

Investors think that further institutional adoption of the cryptocurrency could result in prices going parabolic.

How Bitcoin Could Explode Higher as More Institutions Adopt It

Bill Barhydt, CEO of Abra and a former employee of the CIA and Goldman Sachs, recently said that if only 5% of the liquid assets that the top nine firms in the S&P 500 own were to enter Bitcoin, it would surge:

How To Get Free Crypto  

“9 companies alone in the S&P 500 are sitting on close to $600 billion in cash and short term investments. 5% of that moving into #Bitcoin (or $30 billion) would likely 5x the price of Bitcoin given the lack of sellers. (3/6).”

While this math may not add up in your mind, take fiat amplifiers into account. The amplifier is a concept that for every fiat dollar that is invested in Bitcoin or cryptocurrencies in general, the market capitalization of the space will grow than more than $1.

Estimates suggest that the fiat amplifier is anywhere from two to 25 times, depending on what phase of the market cycle cryptocurrencies are in.

In periods where investors are expecting upside, the fiat amplifier grows as investors don’t want to sell their coins too early.

Boosting Exposure to BTC

Barhydt’s analysis of the institutional adoption situation comes as he is seeking to increase his personal exposure to Bitcoin. As reported by Bitcoinist previously, he said that he is  “considering doubling the allocation of #Bitcoin in my personal portfolio to 25%.”

Coinbase Banner  

Explaining why he thinks this is a good idea, he pointed towards inflationary trends:

“Given the acceleration of currency inflation and the likely price inflation to follow this seems like a better weighting than my current 12%.”

He added that the contacts he has spoken with say that returns in legacy markets such as equities are likely to be “muted in the next five years.” This trend may have the effect of driving capital into alternative assets that may be able to generate healthy returns such as gold and Bitcoin.

The comments he made are reminiscent of those made by a number of other investors in the space, who have dramatically increased their exposure to Bitcoin amid the ongoing macro backdrop. Raoul Pal, CEO of Real Vision, for instance, has over 50% of his liquid net worth in Bitcoin.

Photo by Caleb Riston on Unsplash
Price tags: xbtusd, btcusd, btcusdt
Charts from
How Bitcoin Could Surge 500% Amid Rising Institutional Adoption

Go to Source
Author: Nick Chong

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.