Bitcoin, the primary crypto token, has recently surprised the industry as it did not follow the direction of the ongoing banking crisis. The top crypto’s upsurge against the collapsing banking market has been cited by Cathie Wood (the CEO of ARK Invest). She believes that the respective development will be beneficial for institutional investors. The executive added that more institutions would come to the top crypto in the coming time.
Cathie Wood Says Recent Bank Collapses Will Cause More Institutions to Adopt Bitcoin
The Ark Invest CEO expressed her point of view on the recent price elevation of Bitcoin when she appeared in an interview conducted by Bloomberg. She stated that the spike in the price of the well-known crypto token at a time when a huge disaster is being witnessed by the banking world would grasp the attention of the institutions to a great extent. This would additionally play an important role in increasing the span of the Bitcoin (BTC) market.
As per Wood, it is the fact that Bitcoin’s price has moved opposite to the equity markets, and this is specifically very interesting for organizational investors. According to Oliver Linch, the chief executive officer of Bittrex (a crypto exchange firm based in Seattle), several institutions may have already been taking an interest in Bitcoin.
Linch stated on the 21st of March that many prominent banking entities have gotten into the crypto market to use the crypto assets as investment products even before the ignition of the banking crisis. The Bittrex CEO also mentioned that the current bear market in the crypto industry is greatly dependent on the topic of institutional interest. The executive is of the view that every banking entity possesses a substantive desk specified for the crypto assets.
In the words of the CEO, the respective crypto desks are not only devoted to trading but are responsible for collaborations as well. Nonetheless, he disclosed that crypto companies, as well as conventional financial institutions, still have a separation between them. This has been a cause of headwinds faced by the organizational adoption of crypto assets over the recent months.
While looking at this historically, the executive asserted that such giants in the market have been at the top in driving innovation. However, at the moment, he considers that both sides are fighting each other. In such a scenario, no big change will take place as there is a requirement for these sectors to have harmony rather than making attempts to be superior to each other.
While discussing the effect of the recent developments on the price of the top crypto in terms of institutional interest, Wood elaborated that her institution anticipated that Bitcoin will reach a price range of up to $1-1.5M by the year 2030. Ark Invest made the respective prediction based on the analysis covering the Bitcoin allocation by institutional investors.
Bitcoin Sees Huge Price Upsurge After Banking Crisis
As per the analysis, the majority of the entities would allocate nearly 2.5%-6.5% proportion of the investment portfolios for Bitcoin (BTC). On the contrary, Linch believes that enthusiastic institutional adoption of Bitcoin will take place when the institutions are able to identify opportunities more conveniently. Bitcoin has seen a positive market sentiment after Signature, Silicon Valley Bank, and Silvergate banks, with a 43.6% spike since March 11’s low.