ARK Invest has laid out one scenario that would lead Bitcoin to a price well above $70,000. https://t.co/7OXaMg352u — Cointelegraph (@Cointelegraph) February 1, 2021
ARK Invest said in its annual Big Ideas report that Bitcoin’s value would increase by approximately $40,000 if “all S&P 500 companies were to allocate 1% of their cash” to BTC. The scene is not completely impractical since aid for the BTC is growing.
The report stated:
“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.”
With the present value, a gain of $40,000 will put Bitcoin’s price near $73,000.
If S&P 500 companies assign 10% of their cash reserves to BTC, ARK said that the price of the digital currency could escalate by $400,000.
The institutional and corporate investors surge lead to the strengths that have presently made up the Bitcoin market. Industry data has regularly been showing that over 60% of Bitcoin’s market cap has not moved in a year. It has underlined the long-term holders’ beliefs.
MicroStrategy, which is not part of the S&P 500, led to the drive of Bitcoin by corporate America. At a base cost of more than $1.1 billion, the data analytics company has earned approximately 71,000 BTC. Its assets are worth approximately $2.4 billion at present.
ARK said that MicroStrategy and payment company Square:
“are showing the way for public companies to deploy bitcoin as a legitimate alternative to cash”
Corporate adoption as of today remains very much restricted compared to the number of publicly-traded U.S. companies. Towards their last search, there were less than two-dozen publicly-listed organizations keeping BTC on their books.