Take this for what it’s worth, but these guys are ALWAYS ahead of the curve. I’ve been tracking Ark Investment moves for years. When they initiate a position, and then add to that position, it more often than not, moves significantly higher.
And now, according to their analysis, Bitcoin could scale to anywhere between one to five trillion dollars in network capitalization during the next five years.
After Tesla paved the way for S&P 500 companies to invest a portion of their cash reserves in Bitcoin, the expectation is that more companies will do the same.
According to their Investment report, if all S&P 500 companies were to allocate just 1% of their cash to Bitcoin, its price would double overnight. And if those same companies allocated 10% instead, the price could increase by $400,000.
“We believe Bitcoin offers the most compelling risk-reward profiles among assets,” stated ARK in a recent report exploring the strength of Bitcoin’s network fundamentals. The asset management company also stated that in their view, “Capital allocators should consider the opportunity cost of ignoring bitcoin as part of a new asset class.”
ARK highlights the benefits of a strategic allocation to Bitcoin, given that over the past decade, it is the only asset class that has remained uncorrelated with traditional asset classes like equities, gold, and bonds. As of last month, Bitcoin had a low correlation of 0.26 with the S&P 500, 0.24 with gold, and a negative correlation of -.014 with bonds.
The craziest part of this, is that ARK’s estimates are actually very conservative, considering the price explosion we’ve witnessed in recent months by Bitcoin.
Currently there are nineteen publicly traded companies that hold 105,000 BTC, which ONLY accounts for about 0.57% of BTC’s total supply. What happens if that number goes to 5% or even 10%? The Price will hit stratospheric levels. Meaning that 1/2 million dollars is probably a drastically low target 🎯. Either way, you MUST be involved in the crypto and blockchain space.