The price of bitcoin will hit $ 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 see BTC go up.
"The next Bitcoin stop is $ 50K"
The price of the world's largest cryptocurrency by market capitalization reached the longed-for milestone of more than $ 20K, after having sharply corrected on Tuesday to $ 19,030. The $ 19.5k level has served as a stubborn resistance level since late November, mainly because some investors have been turning a profit due to fears of a significant pullback in the near term.
At press time, bitcoin sits at $ 20,700 and Kiyosaki believes that the path of least resistance for cryptocurrencies 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 in the benchmark cryptocurrency.
He it states :
“Glad I bought Bitcoin. Next stop $ 50k. Institutional Money Wall in 2021. Buy under $ 20k. If you missed Bitcoin, buy silver. Silver is ready to move because of AOC's Green New Deal. America in trouble. Bright future for Bitcoin gold silver and entrepreneurs ”.
Bitcoin currently has a market capitalization of $ 385 billion, or rather 3% of the valuation of gold. If it reaches $ 50,000, its market capitalization will be around $ 929 billion, which is equivalent to 10.4% of the precious metal's market capitalization.
Institutional demand for Bitcoin heats up
This year, Bitcoin has seen growing interest from once-timid institutional investors, thanks to the economic difficulties caused by the coronavirus pandemic. Basically, the cryptocurrency saw wider adoption of the 'digital gold' narrative by ultra-high net worth individuals, hedge funds, and publicly traded corporations.
Additionally, Grayscale has seen a dramatic increase in its total assets under management (AUM). The asset manager particularly caters to institutional investors who want to be exposed to bitcoin but cannot afford to own 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 dislike having spot bitcoins in their wallet have been increasingly investing in the flagship cryptocurrency.
Specifically, the trend of professional investors flocking to bitcoin started with hedge fund manager Paul Tudor Jones, MicroStrategy and Square and looks set to continue into 2021.Robert Kiyosaki