The stagnation in Bitcoin prices around 10K levels has the crypto community worried. Now, Charles Edwards of Capriole says that the next push may very well come from the traditional banks. Capriole’s digital asset manager says that Bitcoin price can double from current levels if conventional banks merely hold at least one percent of their assets in cryptocurrencies.
It is certainly a far-fetched possibility considering traditional banks have only yet started to warm up to the idea of crypto assets. However, a one percent crypto holding isn’t asking much since banks have large balance sheets. Considering the rising mainstream interest in cryptocurrencies, particularly Bitcoin, Charles’s suggestion isn’t illogical.
Retailers, individuals, and institutional interest are spiking as more conventional financial players look for alternate investments.
Bitcoin price rise depends on many factors now
In his latest tweet, Edwards said that just one percent of holdings in crypto assets could double the Bitcoin price from the current levels. He also mentions the current institutional supply of Bitcoin. A few years back, in 2017, the price of Bitcoin touched $20,000. However, since then, the price has plummeted to historic lows due to myriad factors.
Numerous macro and micro events related to the crypto realm has halved the price of Bitcoin from its 2017 highs. A plethora of regulatory policies from various countries also contributed to the BTC price decline. As the Coronavirus pandemic ravaged the world, March 2020 saw the prices revisit below $6,000 levels. But the regulatory policies have also brought transparency to the BTC price.
Things will change with more mainstream penetration
Bitcoin halving also gave the investors a transient hope that the prices could rally soon. Unfortunately, the prices have remained firmly settled around the $10,000 mark. The stagnation is seen by many crypto enthusiasts as stability with minimal volatility – unlike the characteristic volatile nature associated with digital assets.
As US banks get the green light to pursue digital asset goals and more favorable policies in place, Bitcoin price would soon reflect these positive changes. As banks offer more crypto products, the participation of investors and traders would also increase. The increasing crypto exposure would certainly boost the Bitcoin price and may well touch the levels Charles Edwards suggested in his tweet.
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