According to the latest report from the Kobeissi Letter, institutional capital is increasingly taking an interest in Bitcoin, potentially driving its value higher.
Institutional Capital Inflows
The cryptocurrency Bitcoin has shown impressive growth, achieving a 90% compound annual growth rate (CAGR) over the past 13 years, an exceptional benchmark. The Kobeissi Letter states that with about $31 trillion in institutional assets under management in the U.S., a mere 1% flow into Bitcoin could lead to an increase of $300 billion.
Bitcoin Price Forecasts and Analysis
It is anticipated that adding $1 trillion to Bitcoin's market capitalization could raise its price to $200,000. Such growth could occur without retail participation, contingent on continued institutional inflows.
Current Market Situation for Bitcoin
Currently, Bitcoin is trading around $117,850, down 4.3% from its all-time high reached on July 14. The primary reason for this drop is profit-taking by long-term holders rather than liquidation by institutional investors.
Given the persistent institutional interest and Bitcoin's strong historical returns, it is seen as an asset that will gain increasing significance in financial markets.
