- A crypto analyst explained why Bitcoin could be worth more than $700,000 with the merger between the two financial giants.
- Last week, news broke that America’s largest exchange Coinbase has partnered with BlackRock, the world’s largest asset manager, with the aim of bringing cryptocurrency trading to wealthy customers.
- The InvestAnswers presenter did a series of multiplications to determine how much Bitcoin would trade for, based on the number of clients BlackRock offers the asset to.
A cryptanalyst did some research on the partnership between the two financial giants Coinbase and BlackRock, and what this could mean for Bitcoin in the long run.
Why is this union so important for cryptocurrencies? It is that Coinbase is the largest exchange in the United States and BlackRock, is the most important asset manager in the world, with currently 10 billion dollars in assets under management.
This new deal could boost Bitcoin’s market capitalization by at least $1 trillion, according to the host of InvestAnswers on YouTube.
“If BlackRock manages 0.5% of their assets in Bitcoin using my multiplier, which is 21x, that will affect the market cap by $1.05 trillion, which will add about $75,000 to the price of Bitcoin, taking it to $98,000, and a ROI (return on investment) of the price of 326%. This is very, very achievable…”
InvestAnswers.
“Now if they allocate 1%, which of course will take time to get to that level, that would add about 2.1 trillion to the market cap, 150,000 to the price, and that would take the future price of Bitcoin to $173,000, which is a 652% gain from here. If they add 5% to it, which is what Dan Tapiero says, I think it’s too aggressive. Maybe over time, maybe in the next three to five years, that might be possible. That would take the price of Bitcoin to $773,000 in the next three to five years quite easily.”
InvestAnswers.
Dan Tapiero is a prominent macro investor, who commented that the deal between Coinbase and BlackRock could easily propel Bitcoin above $250,000.
“There is no greater macro opportunity for BlackRock than to act to facilitate the adoption of Bitcoin. The 5% change in BLK assets is 500 billion, greater than the value of BTC today. It is a catalyst for the path to $250,000 after BTC halving.”
Tapier.
The chart above explains where Bitcoin stands compared to other technologies in terms of adoption. It should be noted that Bitcoin as an asset is barely 10 years old and cars, for example, are more than 130 years old.
