According to new research from ARK Invest, the price of Bitcoin (BTC) could rise much more as more and more companies allocate some of their reserves to digital assets.
ARK suggested in its annual Big Ideas report that if all S&P 500 companies invest 1 percent of their cash in Bitcoin, the BTC price would increase by about $ 40,000. This scenario is not entirely impossible, as support for the Bitcoin network continues to grow.
The report stated:
“If we compare the search volume with 2017, we can see that the rise in Bitcoin price is not triggered by enthusiasm. With Bitcoin gaining more confidence, some companies may consider including cryptocurrency in their balance sheet.
If the Bitcoin price gains 40 thousand dollars in the current exchange rate, it will reach 73 thousand dollars.
If S&P 500 companies allocate 10 percent of their cash reserves to Bitcoin, the BTC price could rise by as much as $ 400k.
The influx of institutional investors reinforces the strong conditions in the Bitcoin market. According to the data, more than 60 percent of Bitcoin’s circulating supply has never moved in the past year.
MicroStrategy, which is not part of the S&P 500, has become the company in the US that leads institutional investors to Bitcoin. The business intelligence giant currently owns almost 71,000 Bitcoins. The company’s Bitcoin accumulation is worth $ 2.4 billion.