BTC banking crisis price rise to “attract more institutions”
22 Mar 2023
Bitcoin’s value proposition during the current banking crisis will “attract more institutions” over time, according to the CEO of ARK Invest, Cathie Wood.
Speaking to Bloomberg about Bitcoin’s recent price surge on Tuesday, Wood stated: “The fact that Bitcoin moved in a very different way from the equity markets, in particular, was quite instructive.”
In addition, the CEO of Bittrex, Oliver Linch, says institutional interest in Bitcoin is already here. He said in an interview this week that a number of major banks had bought into crypto a long time before the most recent banking crisis, Cointelegraph reports.
“The big talking point of this bear market is institutional interest in crypto. Every big bank now has a substantive crypto desk, not just for trading, but for partnerships as well,” he said.
However, he went on to say there remains a gulf between crypto companies and traditional financial institutions, which in recent months has resulted in headwinds in terms of institutional adoption.
“Historically, those big players have been the biggest drivers of innovation,” he said, adding that both sides are currently “stuck in a bit of a rut. It’s not crypto versus Goldman Sachs or crypto versus institutions. It’s a race to who can do crypto better.”
In addition, in regard to the Bitcoin price impact from institutional interest, Wood said that ARK Invest’s $1-1.5 million BTC price forecast by 2030 stemmed from an institutional investor Bitcoin allocation analysis. This predicts the majority of businesses would assign between 2.5% and 6.5% of Bitcoin to their investment portfolios.
“These are the sorts of allocations that they would have made to emerging, new categories of assets like real estate in the 70s and small caps in the 80s and 90s,” Wood affirmed.
Bitcoin has been surrounded by positive sentiment since the recent collapse of Silvergate, Silicon Valley Bank and Signature banks, the Cointelegraph report adds. The world’s largest cryptocurrency has risen 43.6% since the most recent dip recorded on 11th March, compared to a 25.3% rise in the wider cryptocurrency market during that timeframe, as per CoinGecko data.
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