Corporate buy ins could take Bitcoin price over $500K — report

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Bitcoin ( BTC ) could fetch at least a $535,000 price tag if corporate buyers convert 10% of their cash reserves to the largest cryptocurrency. In one of the various conclusions from its latest report, "Bitcoin: Preparing for Institutions," investment firm ARK Invest said that even a 1% allocation from S&P 500 companies would be enough to increase BTC/USD spot prices by $40,000. The findings come as institutional buyers continue to focus on Bitcoin as a long-term alternative to cash, with one transaction in particular drawing attention after $500 million left Coinbase ."Based on search volumes compared to 2017, bitcoin’s price increase seems to be driven less by hype. With bitcoin appearing to gain more trust, some companies are considering it as cash on their balance sheets," the report reads. In terms of the longer-term impact that corporations could have on Bitcoin's scarcity, ARK forecast that probable allocations would likely far outstrip the 1% level."Based on daily returns across asset classes during the past 10 years, our analysis suggests that allocations to bitcoin should range from 2.55% when minimizing volatility to 6.55% when maximizing returns," it wrote, adding:Despite BTC price action failing to deliver a convincing continuation of its bull run in recent weeks, anticipation is building that the status quo will soon be turned on its head. As Cointelegraph reported , asset management giant Grayscale may provide the spark that reignites the market as soon as Wednesday."There is a large and emerging group of institutions that have an enormous capital base that are reallocating to this space,” Michael Bucella, general partner at fellow investment firm BlockTower Capital, told CNBC this week. On Feb. 8, meanwhile, largest altcoin Ether ( ETH ) will join Bitcoin in seeing dedicated futures markets go live from CME Group.


All data is taken from the source: https://cointelegraph.com/
Article Link: https://cointelegraph.com/news/corporate-buy-ins-could-take-bitcoin-price-over-500k-report


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