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Chris Burniske–former crypto manager at ARK Invest and partner at Placeholder, a New York-based crypto-venture capital partnership with $ 150 million in capital under management–estimates that the market capitalization of bitcoin will exceed $ 1 trillion in the next bull market.
Watching the top 10 cryptoassets at the end of each year makes me think #bitcoin (blue) reaches $ 1 trillion alone in the next bull market. pic.twitter.com/75YaGesYxR
– Chris Burniske (@cburniske) April 20, 2019
At the height of the 2017 crypto rally, during which the price of bitcoin reached $ 20,000, the market capitalization Crypto market has hit record highs of $ 813 billion.
If Bitcoin's capitalization exceeds $ 1 trillion, that would mean that BTC would trade for more than $ 40,000. This would also be worth more than the total value of the cryptography market at its peak of 2017.
How could Bitcoin reach a market capitalization of $ 1 trillion?
Along with gold and other products that attract wealthy individuals and institutions, bitcoin is expected to become a recognized store of value with the right infrastructure to handle massive capital inflows. In the short term, it may take a lot of work to further strengthen the infrastructure supporting the asset class.
As Jeff Sprecher, president of the New York Stock Exchange, explained last year in an interview with Fortune, the purchase of bitcoins poses problems for institutional buyers:
"Bitcoin does not have a good market structure. Even for Bitcoin, different markets display many different prices. And you can pay a spread of up to 6% to exchange dollars against Bitcoin, which means that bitcoin needs to increase by as much as 6% before reaching your break-even point, "he said. said Sprecher.
According to the progress made in improving infrastructure, some investors, including billionaire Mike Novogratz, believe that what will spur Bitcoin to reach a market capitalization of several trillion dollars over the long term will likely be the commitment of institutional investors. Earlier, speaking to Bloomberg, Novogratz said:
"It's not right ($ 20 trillion) right now. What will happen is that one of these intrepid pension funds, a market leader, will say: you know what? We have custody, Goldman Sachs is involved, Bloomberg has an index against which I can track my performance, and they will buy. And suddenly, the second guy buys. The same FOMO that you saw in the retail [will be demonstrated by institutional investors]. "
The account of the entry of institutional investors into the cryptography market has come a long way since 2017 and many investors remained unsure about the possibility of a large-scale institutional adoption into the market cryptography.
However, according to a study conducted by TRADE Crypto in partnership with BitGo, 94% of the 150 endowments surveyed in the United States have already invested in the cryptography market, which would represent 141 institutional investors.
This morning, our Morgan Creek Digital team announced a new $ 40 million crypto venture capital fund anchored in two public retreats.
Institutions do not come.
They are already there. ?
– Pomp (@APompliano) February 12, 2019
Morgan Creek Digital, the first US pension fund to invest in crypto, said 66% of investment in Crypto-currency products from Grayscale came from institutions.
Impact on the cryptographic landscape
Burniske also noted that, unlike 2017, alternative crypto-currencies such as Ethereum, Litecoin and Binance Coin have begun to acquire significant valuations and are no longer being negated by bitcoin.
Another interesting trend is that # 2 to # 10 are gaining ground $ BTC overtime. He looked like #Bitcoin and 9 dwarves, but these dwarves experienced relative growth spurts (especially in 2017).
– Chris Burniske (@cburniske) April 20, 2019
Institutional interest in alternative crypto-currencies and even tokens, as shown by the investment in Blockstack by the Harvard Endowment subsidiaries, has also increased noticeably in recent months.
Bitcoin, currently ranked No. 1 by market capitalization, is down 0.18% in the last 24 hours. BTC has a market capitalization of $ 94.14 billion with a 24-hour volume of $ 12.64 billion.
CryptoCompare's graphic
Bitcoin is down 0.18% in the last 24 hours.
Filed Under: New York, Analysis, Bitcoin, Blockchain People, Price Analysis, Price Monitoring
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