Posted 8 months ago | by @devadmin
One of the biggest investment firms in the world has just green lighted Bitcoin for retail and institutional investors. A new Fidelity report shares a number of bullish sentiments for Bitcoin and the crypto industry. Starting out the report expresses that it’s inevitable that retail investors jump into Bitcoin.
Although, the report recently released isn’t aimed at retail investors, its aimed at the deep pocket institutional investors, there are a few mentions towards retail traders. The report entitled: “BITCOIN INVESTMENT THESIS: BITCOIN’S ROLE AS AN ALTERNATIVE INVESTMENT” expressed to portfolio managers that they could increase their returns by allocating a portion of their holdings into Bitcoin (BTC).
The Fidelity Digital Assets division, responsible for the cryptocurrency custody and execution arm of United States financial services giant Fidelity, claimed in its new report that a new “wave of retail investors” is coming to Bitcoin.
According to the report, social media platforms including — Twitter, Reddit, Telegram, YouTube, and Tik Tok— sh0w there is a drive for the retail adoption of Bitcoin (BTC). These platforms push financial information and advice in a “more viral and rapid” way than traditional channels according to Fidelity.
“As this new wave of retail investors familiarize themselves with these channels, some of their attention will undoubtedly flow to Bitcoin and other digital assets,” the report states.
“Bitcoin is reflexive,” suggested the report. “Price and sentiment experience a self-reinforcing effect.”
Fidelity points to The TIE, a sentiment analysis firm, that analyzes high mentions of Bitcoin on social media and believes this can drive increases in the value of the digital currencies’ price.
“The behavior of retail investors and institutional investors can be different,” the report states, expressing that data from Coinbase suggested that institutional investors trend to “buy the dip” following a slide in prices.
That’s not the only bullish sentiments expressed in the report. The report also indicated that institutional interest could increase Bitcoin’s market capitalization by up to $1.3 trillion by capturing just 10% of investments from the alternative investments and fixed income market valued at $13.4 trillion.
That’s just one single market the potential redistribution of money could flow into Bitcoin. Fidelity also argues that Bitcoin could capture 1% of the bond market which is approximately worth $50.3 trillion. If Bitcoin were to capture 1% of the bond market that would put Bitcoin up another $500 billion in market cap.
The report speculates that fewer bond yields could push asset managers further toward alternative assets like Bitcoin. If Fidelity’s optimistic predictions were to come true, Bitcoin’s total capitalization could increase to as high as $2 trillion dollars in market cap. If that comes to pass Bitcoin will mint another generation of millionaires. Just remember there is a time to get out and sell off before everyone else, and if the cycle follows through that time to get out is sometime in September 2021. Watch Bitboy Crypto explain why the time to get out is before October 2021 in the video below.