Bitcoin price could gain momentum soon, according to the InvestAnswers channel. So how do analysts make this statement?
Analysts’ prediction is one of the highest Bitcoin price predictions ever made. However, this prediction doesn’t seem all that unreasonable when you include the financial giant Blackrock. Last week, the world’s largest asset management company, BlackRock, announced that it will offer Bitcoin trading and custody solutions to institutional investors. BlackRock is working with Coinbase Prime for this.
The power of BlackRock
An analyst from InvestAnswers claims that the partnership between the two financial giants could lead to a full blowout in the price of Bitcoin. According to the analyst, it is possible for Bitcoin price to rally as high as $773,000 in the long term.
InvestAnswers analyst revealed that Bitcoin market cap could increase by at least $1 trillion after the BlackRock investment. Therefore, according to the channel analyst, BTC price could reach $98,000 in the short term. This estimate represents a 326% price increase from where it is today:
“If BlackRock invests 0.5% of assets under management in Bitcoin, the market value of BTC will increase by $1.05 trillion. This will add about $75,000 to the BTC price. At that time, the Bitcoin price, which is currently around $23,000, would reach around $98,000. That’s a 326% increase from the current price.
$773,000 as long-term target
InvestAnswers analyst also argued that if BlackRock, which has $10 trillion in assets, invests 1% of this amount in BTC, the price of Bitcoin could exceed $150,000:
“If BlackRock now invests in a 1% stake, which of course takes time, it will increase its market cap by approximately $2.1 trillion, raise the price by $150,000, and bring the BTC price to $173,000. In this case, the return (calculated from the current price) will be 652%”
According to the analyst, if BlackRock invests 5% of the capital, it is possible for the Bitcoin price to reach $773,000. If you look at the current BTC price (around $23,000), this estimate seems pretty overblown. But given enough time, this target price will become a reality. In the next 3 to 5 years, the required capital should flow into the world’s largest cryptocurrency:
“If BlackRock invests 5%, which I think is very aggressive, as analyst Dan Tapiero said, the price target is realistic. Maybe over time, maybe in the next three to five years, that’s possible. In that case, the Bitcoin price could easily rise to $773,000 in the next three to five years.”
Not Investment Advice
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