Bitcoin (BTC) will spend USD 20,000 if United States banks invest even 1% of their assets, according to an analyst.
Speaking about the institutional adoption of Bitcoin on July 23, Capriole’s digital asset manager, Charles Edwards said that “it is not difficult to see” the trend that is developing.
“It is not difficult to see where this is going”
“If US banks put just 1% of their assets in Bitcoin as investment, hedging, or insurance … Bitcoin price would more than double“he wrote in Twitter, adding:
“Only 1 share of the NASDAQ (Grayscale) already owns 2% of the Bitcoin offering in circulation today. It is not difficult to see where this is going. ”
Edwards uploaded a chart of the growing asset balances of US banks as proof of the possible impact that a tilt towards BTC would have on the largest cryptocurrency.
Grayscale, as reported Cointelegraph, now a giant among Bitcoin hodlers, along with the payment company Square responsible for purchasing the majority of the coins mined this year.
Chart of United States bank asset balances, Source: Charles Edwards / Twitter
Institutions quietly pile up on BTC
Meanwhile, Edwards’ comments are timely. This week, US lenders have received the green light from regulators to participate in cryptocurrency custody activities.
Whether an influx from the sector would ultimately benefit Bitcoin as an asset remains a contentious issue. Previously, concerns circulated that Institutional care in the form of products such as a Bitcoin exchange-traded fund (ETF) would be detrimental to pricing.
“It is not a matter of good or bad, it is just a fact”Edwards added.
However, other recent movements only serve to reinforce the upward trajectory of the market. Paul Tudor Jones, the maverick investor who has become increasingly optimistic about Bitcoin, recently revealed that he had already put up a 2% of your wealth and BTC.
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