Bitcoin's bank crisis surge will attract more institutions
In a recent interview with Bloomberg, Cathie Wood, CEO of ARK Invest, expressed her belief that the recent bitcoin’s bank crisis surge will attract more institutions. It will definitely lead to more institutional interest in the BTC market over time.
Wood was impressed by how Bitcoin’’ moved in a very different way’’ compared to the equity market. During the crisis he stated that this behavior is going to attract more institutions.
Oliver Linch, CEO of Seatle-based crypto exchange Bittrex noted that institutional interest in Bitcoin may have already arrived. He mentioned that many big banks bought into crypto as an investment product well before the recent banking crisis. Every big bank has substantive crypto desk not only for trading but also for partnerships as well.
However, he believes that there is still a divide between traditional financial institutions and crypto firms. It has caused headwinds in institutional adoption over the last few months.
Wood explained in the interview that ARK Invest $1-1.5 million BTC price prediction by 2023. It was made on the back of an institutional investor BTC division analysis. It estimates most firms would allocate between 2.5% to 6.5%to BTC in their investment collections.
Furthermore, she added that these are the sorts of sharing that they would have made to emerging, new groups of assets like real estate in the 70s and small cap in the 80s and 90s.
Linch believes that destructive institutional adoption will come when opportunities become more easily identifiable. He said that once officials see a way that they can make money from Bitcoin, they will be peal to the medal to exploit that opportunity.
Bitcoin’s price has flowed 43.6% since its most recent low On March 11, compared with a 25.3% increase in the broader crypto market.
Positive sentiment has surrounded Bitcoin following the collapses of Silvergate, Silicon Valley Bank, and signature banks.
In conclusion, the recent banking crisis has highlighted the value proportion of Bitcoin. So, bitcoin’s bank crisis surge will attract more institutions. While there is still a divide between traditional financial institutions and crypto firms. The opportunities for institutional adoption will likely arise as Bitcoin continues to prove its worth as an emerging asset class.