According to new research by ARK Invest, the price of bitcoin (BTC) could rise significantly as more companies distribute some of the securities into digital assets.

In its annual Big Ideas report, ARK said the price of bitcoin would rise by almost $ 40,000 if “all S&P companies set aside 1% of their cash” in BTC. This scenario is not entirely unrealistic as support for the BTC network continues to grow.

According to the report:

“Based on the volume of research compared to 2017, it seems that the rise in bitcoin prices is less due to noise. As bitcoin becomes more confident, some companies see it as cash on the balance sheet.
At current values, winning $ 40,000 will bring the bitcoin price closer to $ 73,000.

If the S&P 500 companies channel 10% of their cash reserves to BTC, the price of the digital currency could rise by $ 400,000, according to ARK.

The influx of institutional buyers and business buyers is increasing the powerful hands that are currently shaping the bitcoin market. Industry data consistently shows that over 60% of traded Bitcoin offerings have not changed over the course of a year, confirming the long-term owner’s conviction.

MicroStrategy, not part of the S&P 500, has pressured US companies in favor of bitcoin. The data analytics company raised about 71,000 BTC at a base price of over $ 1.1 billion. Its assets are currently valued at approximately $ 2.4 billion.

ARK said MicroStrategy and payments company Square “are showing public companies a way to publish bitcoin as a legitimate alternative to cash.”

Today, corporate certification is still very limited compared to the number of US listed companies. In the last example, there were fewer than twenty listed entities that had BTC on their balance sheets.

Source: CoinTelegraph