Bitcoin May Reach New All-Time High With BlackRock Entry

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as the input of black rock sent Coinbase stock up 72%Investors are starting to do research on the impact this could have on Bitcoin. depending on the channel InvestAnswersbitcoin could have a new all-time high if the manager invests only 0.5% of their assets in the cryptocurrency.

Thus, Bitcoin it could reach $98,000 per unit, surpassing its previous high of $69,000. On a more aggressive analysis, now using 5% as a base, bitcoin could go as high as $773,000 USD.

Furthermore, BlackRock is just one manager out of many in the world. Therefore, it is possible that others will follow his strategy, pushing prices even higher.

Bitcoin could hit new cap highs thanks to BlackRock

With $10 trillion in assets under management, BlackRock could turn the tide for Bitcoin in the years to come. After all, if you only invested 0.5% of your capital in Bitcoin, that would be a $50 billion investment.

As the administrator could not find the liquidity to buy so many billions without increasing the price of bitcoin, the InvestAnswers channel used a multiple of 21 to determine the impact of this possible purchase.

As such, a $50 billion investment would result in a $1 trillion growth in Bitcoin’s market capitalization.

Relative to the current price of $24,000, it would go up 326% with BTC reaching $98,000.

Impact of BlackRock’s Bitcoin Allocation. Source: InvestAnswers/Reproduction.

In the same image, the investor points to the impact of larger investments, 1% and 5% of BlackRock’s $10 billion. In the most optimistic but hardest to happen case, such an allocation would see the price of bitcoin reach $773,000 USD.

Finally, the biggest impact may be outside of this account. After all, his strategy can sway other managers as well as make lawmakers more lenient, paving the way for ETFs and other investment tools.

BlackRock is the second largest shareholder of MicroStrategy

Another fact that the InvestAnswers channel highlights is the fact that BlackRock is the second largest shareholder in MicroStrategy, only behind Michael Saylor, its founder and CEO. However, it is worth remembering that the manager has investments of the same size in several other publicly traded companies.

Another consideration is that BlackRock owned 17% of MicroStrategy shares before acquiring billions of dollars worth of BTC. A figure that fell to 7.2% in October 2021 after selling for profit.

So it’s just business. So, we can conclude that BlackRock is seeing Bitcoin as a promising business, just like other giants like fidelity.

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