Bitcoin Price Could Hit $50,000 With 1% Allocation From Institutions: Messari

Michael LaVere
  • Messari research analyst Ryan Watkins applied legendary investor Paul Tudor Jones "low single-digit percentage" allocation to bitcoin.
  • Watkins found if institutions allocated one percent of their wealth to bitcoin, the price of BTC would "easily" rise above $50,000.

Crypto research firm Messari estimated a 1% allocation from institutions would drive the price of bitcoin to $50,000.

In a series of tweets published June 23, Messari research analyst Ryan Watkins outlined the impact of institutions following the legendary investor Paul Tudor Jones in allocating a “low single-digit percentage” to bitcoin. 

According to Watkins, a small percentage allocation from institutions such as endowments, pension funds, and mutual funds would lead to the influx of hundreds of billions “if not trillions” of dollars in the crypto markets. 

Watkins used the model proposed by crypto researcher Chris Burniske, which predicts that fiat inflow into crypto-assets drives price gains between two and twenty-five times.

Watkins estimated that an aggregate one percent allocation from all institutions would lead to bitcoin’s market capitalization “easily” reaching above $1 trillion, with the price appreciating to over $50,000.

Watkins concluded by saying that bitcoin did not need institutional investment to succeed, but the benefit to BTC’s price would ultimately assist the crypto-asset in becoming an established store of value. 

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