Sygnum: Bitcoin capitalization will rise to $ 20 billion

The head of the Sygnum investment research department Katalin Tishhauser predicted the increase in bitcoin in the scheme when $ 1 billion of capital revenues in the US potential strategic reserve based on the first cryptocurrency can increase the market capitalization of $ 20 billion. She spoke about this in an interview with The Block.

According to Tishhauser, an additional $ 19 billion in this calculation arises due to the shock of demand and a limited liquid offer of Bitcoin.

Her comments indicated that with the advent of new investments, a limited proposal stimulates the rapid increase in prices. This ascending pressure tends to increase, since the initial injections reduce the affordable number of bitcoins for subsequent demand, journalists noted.

It should be noted that from January 23, 2025, by decree of US President Donald Trump, the ability to create a strategic bitcoin reserve is being worked out by a working group.

The Tishhauser also described the dynamics, breaking the effect into stages: the first and second billions of dollars of inflow mainly “exhaust” the existing demand, and the third and fourth will encounter a more limited proposal, which will lead to a more rapid increase in prices.

“I call this phenomenon a shock of demand – when the amount of money entering the market exceeds the supply available for sale, the price increases sharply,” she explained.

In addition, the department manager emphasized that a pure increase in demand can arise from various sources. State and local governments who strive for reserve assets, distribution from large institutional investors and, possibly, corporate treasury will probably contribute to the total pure demand, which enhances this multiplier effect in the “market pursuit”.

The Tishhauser also drew attention to the growth of market capitalization of stablecoins as an indicator, because, in its opinion, their increase in their volume usually indicates that more funds are sent to the cryptocurrency market.

She emphasized that the multipliers that were observed during the influx of funds in 2024 laid the foundation for this forecast.

“A 20-fold multiplier is based on what we observed during an increase in the influx of investment in 2024. However, this year there may be even larger growth if the central banks actively join, ”Tishhauser added.

Recall that so far, according to Senator Cynthia Lammis, the legislative initiative to introduce the US Bitcoin reserve requires at least 60 votes as support from both parties in the Senate.

At the same time, two American states – Arizona and Utah – have already passed the stage of adopting relevant bills at the state level.

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Source: Cryptocurrency

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