Sygnum: Every $1 billion strategic Bitcoin reserve could potentially drive a market value increase of $20 billion
According to The Block, Sygnum's research director Katalin Tischhauser predicts that every $1 billion strategic Bitcoin reserve purchase could trigger a demand shock, leading to a $20 billion increase in Bitcoin's market value. Tischhauser explains that this 20-fold leverage effect stems from direct capital inflows, surging market demand, and the limited liquidity supply of Bitcoin. As early market inflow funds are consumed, subsequent liquidity decreases and prices may accelerate.
In addition, US President Trump established the Presidential Working Group on Digital Asset Markets in his first week in office to study the feasibility of US strategic Bitcoin reserves. If implemented, it could bring massive institutional fund inflows and further drive market growth. Sygnum also pointed out that central banks of various countries, local governments, large institutional investors and corporate financial reserves might become new sources of demand for Bitcoin; stablecoin's market value growth can also serve as a leading indicator for incoming funds into the market. Tischhauser believes if central banks start participating on a large scale, the bitcoin market may see stronger momentum than in 2024.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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