The bitcoin price will clock $50,000 in 2021, according to Robert Kiyosaki, businessman, and author of the best-selling personal finance book “Rich Dad Poor Dad”.
In a tweet on December 13, Kiyosaki argued that “a wall of institutional money” coming next year will drive BTC higher.
Bitcoin’s “Next Stop Is $50K”: Kiyosaki
The price of the world’s largest cryptocurrency by market cap reached the $19,500 region again on Tuesday before correcting sharply to $19,030. The $19.5k level has served as a stubborn resistance level since late November, mainly because some investors have been taking profits due to fears of a significant pullback in the near-term.
At the time of publication, bitcoin is sitting at $19,365.13 and Kiyosaki believes the crypto’s path of least resistance remains on the higher side.
The renowned author advised his Twitter followers to buy bitcoin below $20,000 as $50,000 appears to be bitcoin’s next target based on record institutional inflows into the benchmark crypto.
“Glad I bought Bitcoin. Next stop $50k. Wall of institutional money coming 2021. Buy below $20k. If you missed Bitcoin, buy silver. Silver set to move due to AOC’s Green New Deal. America in trouble. Future bright for gold silver Bitcoin and entrepreneurs.”
Bitcoin currently has a market cap of $359 billion — or rather 3% of gold’s valuation. If it hits $50,000, its market capitalization will be around $929 billion, which is equivalent to 10.4% of the precious metal’s market cap.
Institutional Demand For Bitcoin Heats Up
This year, bitcoin has witnessed a growing interest from the once-shy institutional investors, thanks to the economic distress caused by the coronavirus pandemic. Basically, the cryptocurrency saw a wider adoption of the ‘digital gold’ narrative from ultra-high net worth individuals, hedge funds, and publicly listed corporations.
Moreover, Grayscale has recorded a dramatic surge in its total assets under management (AUM). The asset manager particularly serves institutional investors who want exposure to bitcoin but do not have the luxury of holding the asset directly for some reason. Grayscale now has approximately $13 billion AUM as of Dec. 15, suggesting that a large number of accredited investors who don’t like holding spot bitcoin in their portfolio have been increasingly investing in the flagship cryptocurrency.
Specifically, the trend of professional investors flocking to bitcoin started with the likes of hedge fund manager Paul Tudor Jones, MicroStrategy, and Square and looks set to continue in 2021.