21:26ARK Invest lays out what it would take for Bitcoin to hit $70K
Bitcoin’s price is supported by “robust network fundamentals,” says ARK Invest. If more companies allocate a portion of their balance sheet to BTC, the price could skyrocket.
In its annual Big Ideas report, ARK said Bitcoin’s price would increase by roughly $40,000 if “all S&P 500 companies were to allocate 1% of their cash” to BTC. This scenario isn’t entirely unrealistic as support for the BTC network continues to grow.
According to the report:
If S&P 500 companies allocated 10% of their cash reserves to BTC, the digital currency’s price could increase by $400,000, ARK said.
The influx of institutional and corporate buyers adds to the strong hands that currently make up the Bitcoin market. Industry data consistently shows that more than 60% of Bitcoin’s circulating supply hasn’t moved in a year, underscoring the conviction of long-term holders.
MicroStrategy, which isn’t part of the S&P 500, has led corporate America’s push into Bitcoin. The data analytics firm has accumulated nearly 71,000 BTC at a basis price of over $1.1 billion. Its holdings are currently worth roughly $2.4 billion.
MicroStrategy and payment company Square “are showing the way for public companies to deploy bitcoin as a legitimate alternative to cash,” ARK said.
As of today, corporate adoption remains extremely limited compared with the number of publicly-traded U.S. companies. At last check, there were less than two-dozen publicly-listed entities holding BTC on their books.
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