Bitcoin (BTC) will pass the $20,000 mark if U.S. banks invest even 1% of their assets, according to one analyst.
Speaking about Bitcoin’s institutional adoption on July 23, Capriole’s digital asset manager, Charles Edwards, said that it is „not difficult to see“ the trend that is developing.
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„It’s not hard to see where this is going.
„If U.S. banks put only 1% of their assets into Bitcoin as investment, hedging or insurance… the price of Bitcoin would more than double,“ he wrote on Twitter, adding:
„Only 1 share of the NASDAQ (Grayscale) already owns 2% of the Bitcoin offering in circulation today. It’s not hard to see where this is going.“
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Edwards uploaded a graph of the growing asset balances of U.S. banks as evidence of the possible impact a tilt toward BTC would have on the larger cryptomoney.
Grayscale, as reported by Cointelegraph, is now a giant among Bitcoin’s hodlers, along with the Square payment company responsible for purchasing most of the mined coins this year.
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In the meantime, Edwards‘ comments are timely. This week, U.S. lenders received a green light from regulators to participate in cryptomoney custody activities.
Whether an influx of the sector would ultimately benefit Bitcoin as an asset remains a controversial issue. Previously, concerns circulated that institutional attention in the form of products such as a Bitcoin Trader Exchange Traded Fund (ETF) would be detrimental to price determination.
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„It’s not a question of right or wrong, it’s just a fact,“ Edwards added.
But other recent moves only serve to reinforce the market’s upward trajectory. Paul Tudor Jones, the maverick investor who has become increasingly optimistic about Bitcoin, recently revealed that he had already put up to 2% of his wealth into BTC.