In the annual report, experts of the asset management company Ark Investment Management reported that, provided that the first cryptocurrency is included in the portfolios of institutional investors with a share of only 2.5%, bitcoin could rise in price to $ 200,000.
And if the increase in the share of BTC occurs in the amount of 6.5 % this can raise quotes up to $ 500,000.
There is also another model. For similar growth, it is enough for companies in the SP 500 to convert 10% of their cash reserves into digital gold, Ark Invest noted, citing Square and MicroStrategy as examples.
Institutions should take Bitcoin into account, analysts said, as the asset «offers one of the most compelling risk rewards.»
“We are confident that wealth managers should consider bitcoin as part of a new asset class”, they added.
Considering the daily returns by asset class over the past 10 years, analysts have determined that the share of bitcoin in the portfolio should be from 2.5% with minimal volatility to 6.5% to maximize profits.
Ark Invest analysts are also confident that the current rise in the BTC price is more fundamental than the 2017 rally. Given this fact, it can be argued that over the next 5-10 years, the market capitalization of the first cryptocurrency may increase to $ 1-5 trillion.
Where is it more profitable to buy bitcoin?
For the safe and convenient purchase of cryptocurrencies, we have prepared a rating of the most reliable and popular cryptocurrency exchanges that support the deposit and withdrawal of funds in rubles, hryvnia, dollars and euros.
The most reliable sites with the highest turnover of funds, for several years the largest cryptocurrency exchange in the world has been Binance. The Binance platform is the most popular crypto-exchange in the CIS as well, since it has the maximum trading volumes and supports transfers in rubles from Visa / MasterCard bank cards and payment systems QIWI, Advcash, Payeer.