„We will see more institutions issuing large amounts of bonds and fixed income instruments – convertible or not – to buy Bitcoin by the ton
It seems that the future of Bitcoin will be decided in the field of institutional investors, and the demand and consequent valuation of the asset will have precisely the purchase and use by large companies as the main focus. All this wave of interest started after MicroStrategy’s announcement about the purchase of R$ 1.3 bi in Bitcoin. But we can be only at the beginning of this new wave, at least is what Pierre Rochard, one of Kraken strategists believes.
In a presentation of about 1 hour, different Kraken strategists with different points of view spoke about what they expect from the market of cryptomoedas for 2021, especially in relation to Bitcoin.
The strategist, and also the digital influencer of the cryptomarket, said he believes that at least 50% of the 500 largest companies in the world will have Bitcoin in their portfolios by the beginning of 2022.
„My bolder prediction is that if we take the S&P 500, the largest corporations in the world, I think by the end of 2021 more than half of them will have Bitcoin in their value reserves, and I think this will happen because of basic concepts of economics, which is: distribute shares. Buying Bitcoin makes the price of the shares rise above the dilution“.
For Pierre Rochard, this basic concept will make the adoption of institutional investors increase. Thus, we will have „a great amount of Bitcoin corporative adoption“.
„We will see more institutions doing what Michael Saylor [MicroStrategy CEO] is doing, corporations issuing large amounts of bonds and fixed income instruments – convertible or not – to buy Bitcoin by the pool“.
The beginning of this new wave of investments can already be seen, with more than 8 companies allocating part of their reserves in Bitcoin. For many analysts, we are at the beginning of the institutional adoption of Bitcoin.
For WillyWoo, also an influential cryptomarket and well-known analyst, this is the „moment that Bitcoin won the game“.
„This seems the moment that Bitcoin won the game against all the other asset classes.
With this valorization motivated by institutional investors, there is no way regulation can end it; Sovereign Wealth is next. So it [Bitcoin] will change the world for real. These are interesting times“.