Charles Edwards – the digital asset manager at Capriole – says the price of bitcoin could easily shoot up to $20,000 if U.S. banks put in at least one percent of their assets into crypto.
Charles Edwards: Banks Can Make BTC Hit $20,000
This may be asking much from banks, but one percent, for the most part, isn’t much, and it looks like interest in bitcoin has been increasing over the past several months between both retailers and institutional players alike, so perhaps the figure he’s suggesting isn’t that out of place. On Twitter, Edwards stated:
If U.S. banks put just one percent of their assets into bitcoin as an investment, hedge or insurance… the bitcoin price more than doubles… Just one NASDAQ stock (Grayscale) already owns two percent of circulating bitcoin supply today. It’s not hard to see where this is going… It’s not a matter of good or bad. It’s just a fact.
The last time bitcoin was trading for $20,000 was during the late 2017 holiday season. It served as a fine Christmas president for crypto enthusiasts everywhere, though the price jump was far from the “gift that kept on giving.” The asset’s price immediately began to sink the following month thanks to news that Coincheck – a large crypto exchange in Japan – was the victim of a major hack that saw more than half a billion in assorted crypto funds vanish overnight.
From there, the asset’s price continued to fall until it reached the $6,000 range, where it spent most of the summer. Many believed the asset would remain here for some time, though things took a nastier turn during Thanksgiving of 2018, when the currency dropped into the $3,500 range. It remained at this price for several months before finally climbing back up to the $5,000 range in April of 2019.
Once or twice, bitcoin has given users the impression that it would soon ascend back to the $20,000 mark such as in the summer of last year when it spiked beyond $13,000. Many traders believed that the currency – which had been on a seriously bullish role over the past few months – would continue this behavior and strike its all-time high once again, though this achievement failed to materialize.
Things Are Changing for the Better
Now, however, the circumstances for bitcoin have changed somewhat, with banks in the U.S. now being given the greenlight to offer crypto-based services to its clients. This will ultimately open several doors for traders and give them a chance to potentially garner more exposure to BTC and its crypto cousins, which may potentially lead to price increases across the board.
So, perhaps that one percent of every bank’s total assets going to crypto is a solid possibility. At the time of writing, bitcoin has shot up to just under $9,700 – the highest it’s been in several weeks.