Real Vision analyst Jamie Coutts believes that certain investment trends could be the catalyst that sends Bitcoin (BTC) prices soaring into six digits.
Coutts says that increasing adoption of Bitcoin among asset managers could cause the flagship crypto asset to increase by more than 643% of its current value by 2030.
“Every time an asset manager chooses BTC over sovereign debt, it reinforces the existing downward trend in asset values. A small shift towards Bitcoin could see its price rise to $500,000 before the end of the decade.” There is a possibility that it will be exceeded.”
Coutts believes that Bitcoin's relatively strong performance during bear markets and its store of value properties could lead to more investment portfolios adding BTC exposure.
“Key points from previous thread on asset allocation 18 months ago:
- BTC outperformed other asset classes during the last bear market, showing that managers are underpaid for holding bonds, commodities, and even some stocks.
- Despite government bond purchases and new banking regulations, the shift away from bonds is inevitable.
- Adding BTC to large sovereign portfolios remains viable despite liquidity constraints. ”
He said Bitcoin could start attracting some of the money traditionally allocated to government bonds as investors seek better returns amid a decline in fiat currencies.
“For portfolio managers, downgrades are a serious problem… Over the relatively short period since 2018, the only assets that acted as effective hedges against large increases in the monetary base were Bitcoin and US technology stocks…
Traditional allocators will inevitably begin to consider the possibility that non-sovereign bearer assets, free of counterparty risk, can replace bonds issued by prodigal governments. ”
In April 2023, he estimated that if 1% of the global bond market value were transferred to Bitcoin, “the network's market capitalization would be over $3 trillion, equivalent to a price of about $185,000.”
At the time of writing, Bitcoin is trading at $67,222.
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Disclaimer: The opinions expressed on The Daily Hodl do not constitute investment advice. Investors should perform due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that transfers and transactions are made at your own risk and you are responsible for any losses you may incur. The Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets. The Daily Hodl is also not an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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