We’ve been already addressing the fact that the institutional adoption of Bitcoin and digital assets has been one of the main goals of the crypto space.
There have been a lot of moves made in this direction, and things will definitely continue down this road.
The online publication the Daily Hodl reveals that Diginex chief executive Richard Byworth talks about his expectations on the impact of corporate adoption on Bitcoin’s price and supply.
Institutional adoption impact on Bitcoin
During an interview with Bloomberg Markets and Finance, he said that he expects Bitcoin to surge over 212% from its current price.
“We are modeling out about $175,000 for the price of Bitcoin by the end of this year.”
He also said that BTC could hit this price target during Q4 of 2021 based on the stock-to-flow ratio (S2F).
The same online publication mentioned above notes that the indicator divides the amount of a commodity in circulation by the amount mined per year.
“If you look at various aspects of stock-to-flow, the way that we’ve already seen 18.6 million Bitcoin has already been mined out of a 21 million supply, we are already starting to run into an interesting ratio on a stock-to-flow basis. And so we think that probably by the end of October into the latter part of the year, we’re going to see that peak.”
He also said that BTC is currently experiencing a supply-side crisis, and this is happening due to the fact that corporations race to acquire the king coin.
“You are starting to see the corporate adoption, institutional adoption to the degree that is so extreme. You’ve got four companies – MicroStrategy, Tesla, Square, and more recently Meitu; those four companies, they’ve bought 40% of the annual supply of Bitcoin in just a few months. So we really have a supply-side crisis in Bitcoin. This is only the early stage of the rally. Things are going to get a lot more heated from here.”