By
Steve Muchoki
April 19th, 2024
A popular analyst has provided guidance for the price of Bitcoin owing to the recent BlackRock collaboration with Coinbase.
Crypto analyst, and host of InvestAnswers, recently broke down Bitcoin price trajectory scenarios to his teeming followership. According to this crypto strategist, the partnership between BlackRock and Coinbase could see Bitcoin price touch $150K en route to $773K in five years. According to the InvestAnswers host:
“If BlackRock puts 0.5% of their assets under management into Bitcoin using my multiplier which is 21x, that will impact the market cap by $1.05 trillion, which will add about $75,000 to Bitcoin’s price, taking it to $98,000, and an ROI (return on investment) from today’s price is 326%.”
In addition, the crypto analyst also goes on to state:
“Now if they allocate 1%, which of course will take time to get to that level, that would add about $2.1 trillion to the market cap, $150,000 to the price, and that would take the future price of Bitcoin to $173,000, which is a 652% gain from here.”
The crypto analyst concluded that BlackRock allocating an aggressive 5% in AUM would pump BTC to $773,000 in five years.
BlackRock’s Extensive AUM Makes It a Potential Heavy Influencer of Bitcoin Price Trajectory
The crypto analyst’s views come on the heels of a deal between BlackRock and Coinbase. Last week, the investment management company and the American crypto exchange announced they would bring crypto trading to wealthy clients. Pursuant to the deal, Coinbase would grant crypto exposure to BlackRock’s institutional investor base. This development marks a milestone for BlackRock, the world’s largest asset manager with around $10 trillion in assets under management. Furthermore, prior to its collaborative scheme with Coinbase, BlackRock had hinted at offering crypto trading opportunities to its clientele. This is because there was growing interest among the asset manager’s investor base in accessing crypto trading. As BlackRock’s Global Head of Strategic Ecosystem Partnerships, Joseph Chalom, explained at the time:
“Our institutional clients are increasingly interested in gaining exposure to digital asset markets and are focused on how to efficiently manage the operational lifecycle of these assets.”
Furthermore, Chalom stated that the new initiative makes it possible for BlackRock clients to fulfill their desire “directly in their existing portfolio management.”
Coinbase shares surged by more than 16% following the exchange’s partnership announcement with BlackRock.
Shares of Coinbase surged by more than 16% following the announcement of the crypto exchange’s partnership with BlackRock. In addition, the leading crypto exchange added another 1.24% to hit $90 during the after-trading session. This development provided a much-needed shot in the arm for Coinbase shareholders who saw the company’s fortunes decline during the recent crypto downturn.
In the last five days, BlackRock shares have jumped 5.26% and increased 11.59% over the past month.
BlackRock & Coinbase
BlackRock started operations in 1988 as a risk management and fixed income institutional asset manager. The New York City-based company currently has 70 offices in 30 countries and a client base that spans 100 countries.
Coinbase is the US’ largest crypto exchange by trading volume and operates as a publicly traded company. However, the exchange adopts a distributed company business model, with employees working remotely.