Bitcoin’s (BTC) value proposition is on full display amid the current banking crisis, which will only “attract more institutions” to the BTC market over time, ARK Invest CEO Cathie Wood believes.
Wood shared his thoughts on the recent BTC price surge in a March 21 Bloomberg. interviewstating that its price behavior during the crisis “is going to attract more institutions.”
“The fact that Bitcoin moved in a very different way than stock markets, in particular, was quite instructive,” he added.
ARK Investment Management CEO Cathie Wood says Bitcoin price action through the latest banking turmoil will attract more institutions and investors https://t.co/2d8cT7SX3n pic.twitter.com/Eaymh05lhq
—Bloomberg Crypto (@crypto) March 21, 2023
Institutional interest in Bitcoin may have already arrived according to Oliver Lynch, CEO of Bittrex, the Seattle-based crypto exchange.
Linch pointed out on a March 21 interview on The Wolf Of All Streets podcast that many large banks bought cryptocurrency as an investment product long before the recent banking crisis:
“The big talking point of this bear market is institutional interest in cryptocurrencies. All the big banks now have a substantive crypto desk, not only for trading, but also for associations.”
However, he noted that there is still a divide between traditional financial institutions and crypto companies, which has caused hurdles in institutional adoption in recent months.
“Historically, those big players have been the main drivers of innovation,” he said, before stating that the two sides are currently “stuck in a rut” and that the “big change” won’t happen until they stop fighting for superiority. . .
“It’s not crypto versus Goldman Sachs or crypto versus institutions. It’s a race to see who can make crypto better.”
Regarding the impact of institutional interest on the price of Bitcoin, Wood explained in the interview that ARK Invest’s $1-1.5 million BTC price prediction for 2030 was based on an investor BTC allocation analysis. institutional, which estimates that most companies allocate between 2.5 million% to 6.5% to BTC in their investment portfolios.
“These are the kinds of allocations they would have made to new emerging asset categories like real estate in the 1970s and small caps in the 1980s and 1990s,” Wood added.
Related: Bitcoin Has $28K Due For Spot Buying, But Institutional Investors Are Still Selling
Linch, on the other hand, believes that “aggressive” institutional adoption will come when the opportunities are easier to spot:
“Show them a way it can be done and it can make them money and I guarantee they won’t get in the way of that. They will be at full steam to seize that opportunity.”
Positive sentiment has surrounded Bitcoin since Silvergate Bank collapsed on March 3 and its price has risen 20.4% since then, compared to a 7.7% rise in the broader crypto market during that time, according to CoinGecko. . data.
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