More Institutional Investment in BTC May Be On Its Way (Here’s Why)
Article source, here.
TL;DR
In a recent interview ARK Invest CEO, Cathie Wood, spoke about how the current banking crisis would "attract more institutions" to the BTC market over time.
ARK estimates that most firms would allocate between 2.5% to 6.5% of their investment portfolios towards BTC.
A big factor in institutional investment in BTC is the decoupling (breaking up) of BTC price movement with the stock market's price movement.
The less correlation between BTC and the stock market price movement, the more incentive institutional investors have to use BTC as a way to diversify their portfolio.
Full Story
ARK Invest CEO, Cathie Wood, did an interview with Bloomberg on Tuesday which raised some serious eyebrows (in a good way!).
In the interview she spoke about how the current banking crisis would "attract more institutions" to the BTC market over time.
One of the points Wood made was that ARK Invest predicts the price of BTC would be between $1-$1.5M USD per coin by 2030.
(A bit different to the BTC price to hit $1M in 90 days bet made earlier this week by Balaji, but still...)
Here's Wood's rationale:
ARK estimates that most firms would allocate between 2.5% to 6.5% of their investment portfolios towards BTC.
The idea being that they would be diversifying their funds (and therefore their risk) into a new asset class.
(Shoutout to Mrs Zabowski for teaching Seb about 'portfolio diversification' in Economics 101).
A big factor in institutional investment in BTC is the decoupling (breaking up) of BTC price movement with the stock market's price movement.
And that's exactly what has happened over the past week or so.
See the correlation?
Nah, us either - that's the point.
The less correlation between BTC and the stock market price movement, the more incentive institutional investors have to use BTC as a way to diversify their portfolio.
And the more institutional investment in BTC, the stronger it becomes as a whole.
We love to see it!