BlackRock’s entry into the cryptocurrency market could at least double the price of bitcoin

Katie Wood, the founder of the American investment management firm ARK Invest, believes that BlackRock 's entry into the cryptocurrency space could have huge consequences for the price of bitcoin.

Last week, the American crypto giant Coinbase announced a merger with BlackRock, the largest asset manager in the world.

In a recent video, Wood explains that her firm conducted a study of institutions that found that companies that want access to cryptocurrency but also want to minimize volatility invest 2.5% of their portfolios in cryptocurrency. Wood notes that if the 2.5% rule is applied to BlackRock’s platform (worth $ 40 trillion), it would mean a demand of more than $ 1 trillion. According to the head of ARK Invest, this level of demand would «more than double» the price of the HTS.

Wood also notes that the price of cryptocurrencies may continue to rise: «We estimate the illiquid supply to be approximately 14 million out of the 18−19 million BTC in circulation. We estimate that only three million units are truly liquid. If we were to see a $ 1 trillion increase in demand, it would probably drive the price up much more.»

It is worth noting that over the past 24 hours, the cryptocurrency asset BTC, which is the highest in terms of market capitalization, has grown by almost 3%.