Bitcoin (BTC) can fetch at least $ 535,000 if business buyers convert 10% of their cash reserves into the largest cryptocurrency.

In one of the various findings of its latest report, Bitcoin: Preparing for Enterprises, investment firm ARK Invest stated that even a 1% spin-off from the S&P 500 would be enough to raise BTC / USD spot prices by $ 40,000.

Minimum corporate placement BTC: 2.55%
The results are coming as institutional buyers continue to focus on bitcoin as a long-term alternative to cash, with one transaction in particular getting $ 500 million in Coinbase’s attention.

“Based on the volume of research compared to 2017, it seems that the rise in bitcoin prices is less due to noise. As Bitcoin seems to become more confident, some companies see it as cash on the balance sheet, ”the report says.

In terms of the long-term impact that companies could have on the bitcoin shortage, ARK predicted that potential allocations are likely to exceed the 1% level.

“Based on daily returns by asset class over the past 10 years, our analysis suggests that the distribution of bitcoins should range from 2.55% when volatility is decreasing to 6.55% when it maximizes returns,” she wrote:

“Based on the ARK wallet allocation simulations, institutional allocations of 2.5% to 6.5% can affect the bitcoin price by $ 200,000-500,000.”

The deep pocket story remains dominant
While the price action of BTC has not provided a convincing continuation of the rally in recent weeks, expectations are growing that the status quo will be turned upside down. As Cointelegraph reports, asset management giant Grayscale has the potential to spark the market on Wednesday.

“There is a large and growing group of companies with a huge capital base that is being redeployed into this space,” Michael Buzella, general partner of investment subsidiary Blockbear Capital, told CNBC this week.

“And if you think of a supply and demand model for an item, the supply curve decreases to zero over time, and demand rises sharply.”
However, on February 8, the largest alternative digital currency (ETH) will join Bitcoin to watch the rise of custom futures markets directly from CME Group.

Source: CoinTelegraph