With Bitcoin’s currently impressive bull run, a lot of investors and market experts have been predicting high hopes for Bitcoin’s final market capitalization.
One of them is Chris Burniske, a former crypto lead at ARK Invest and a partner at Placeholder, a crypto venture capital partnership based in New York with $150 million in capital under management.
Chris believes that the market cap of bitcoin will cross $1 trillion during the next bull market. Well, if what Chris is saying is true, then bitcoin’s capitalization will surpass the $1 trillion mark, which means that BTC would trade for over $40,000.
That would essentially mean that Bitcoin’s value would be even higher than what it was during the peak of crypto market back in 2017. During that time, the cryptocurrency was trading at $20,000, and the market capitalization of the crypto market reached $813 billion.
But is this a dream that is too unrealistic to be realized. Let’s look at the facts here for a second. Bitcoin needs to become a more widely adopted form of currency if it is to become a major form of payment. The infrastructure of the asset class needs to be improved to be able to meet the predicted value targets.
Jeff Sprecher, the chairman of the New York Stock Exchange, said that buying Bitcoin can be a problem for institutional buyers:
“Bitcoin does not have a good market structure. Even for Bitcoin, different markets are posting lots of different prices. And you can pay an up to 6% spread to exchange dollars for Bitcoin, meaning Bitcoin needs to rise by as much 6% before you break even,” Sprecher said.
Mike Novogratz on the other hand said, that institutional investors will contribute to the growth of Bitcoin’s market cap:
“It won’t go there ($20 trillion) right away. What is going to happen is, one of these intrepid pension funds, somebody who is a market leader, is going to say, you know what? We’ve got custody, Goldman Sachs is involved, Bloomberg has an index I can track my performance against, and they’re going to buy. And all of a sudden, the second guy buys. The same FOMO that you saw in retail [will be demonstrated by institutional investors].”