Real Vision analyst Jamie Coutts believes that one investment trend could be the catalyst that sends Bitcoin (BTC) soaring to six figures.
Coutts says that increasing Bitcoin adoption among money managers could cause the flagship crypto asset to increase by more than 643% of its current value before 2030.
“Every time a money manager chooses BTC over sovereign debt, it reinforces the existing debasement trend. A slight shift toward Bitcoin could drive its price above $500,000 before the decade ends.”
Coutts believes that Bitcoin’s relatively strong performance during bear markets and its store-of-value properties may result in more investment portfolios adding exposure to BTC.
“Key takeaways from a previous thread on asset allocation from 18 months ago:
- During the last bear market, BTC outperformed other asset classes, indicating that managers are not adequately compensated for holding bonds, commodities or even some equities.
- The shift away from bonds is inevitable, despite government mandates for bond purchases or new banking regulations.
- Techniques for adding BTC to portfolios for massive sovereigns remain viable, even amid liquidity constraints.”
He has said that Bitcoin could start attracting a percentage of funds that traditionally are allocated to government bonds as investors pursue better returns amid fiat currency debasement.
“Debasement is a real problem for portfolio managers… In the relatively short period since 2018, Bitcoin and US technology stocks have been the only assets serving as effective hedges against massive increases in the monetary base…
Traditional allocators will inevitably begin to weigh up the possibility that a non-sovereign bearer asset with no counterparty risk, could be an alternative to bonds issued by profligate governments.”
In April 2023, he estimated that if 1% of global bond-market value moved into Bitcoin, “the network’s market cap would rise north of $3 trillion, equating to a price of around $185,000.”
Bitcoin is trading for $67,222 at time of writing.
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