Bitcoin’s price could reach a staggering $200,000, fueled by a massive influx of institutional capital, according to a new report from OKG Research. The research suggests that current institutional holdings of Bitcoin represent just the tip of the iceberg, with a potential $2.28 trillion poised to enter the market.
The report highlights that only 0.01% of listed companies globally currently hold Bitcoin. This minimal participation suggests significant untapped potential for institutional investment. OKG Research’s conservative estimate of $2.28 trillion in potential inflows aligns with bullish predictions from major financial institutions like Bernstein, BCA Research, and Standard Chartered Bank, all of whom have projected similar price targets.
This optimistic outlook comes amidst recent market volatility. On Tuesday, Bitcoin experienced a dramatic price swing, surging to $99,000 before plummeting back below $93,000, a drop exceeding 6%. This volatility was attributed to rumors of a ceasefire agreement between Israel and Lebanon, demonstrating Bitcoin’s sensitivity to geopolitical events. The incident followed a 40%+ surge in Bitcoin’s price over the past month, raising questions about the sustainability of such rapid growth.
OKG Research argues that while short-term events can trigger price fluctuations, underlying macroeconomic conditions remain favorable for Bitcoin. The recent Federal Reserve interest rate cut, the first since 2020, has injected liquidity into the market, benefiting risk assets like Bitcoin. This, coupled with Bitcoin’s growing recognition as an inflation hedge and a tool for mitigating real-world risks, further strengthens its appeal to investors.
The report also emphasizes the growing role of institutional investors in the Bitcoin market. Since the launch of Bitcoin spot ETFs in January 2024, their holdings have reached 5.63% of the total Bitcoin supply, surpassing the crucial 5% threshold often considered a significant indicator of institutional adoption.
