6 February 2025
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Sygnum Forecasts $1 Billion Bitcoin Reserve Could Increase Market Cap by $20 Billion
Sygnum's Optimistic Bitcoin Forecast
Sygnum's Head of Investment Research, Katalin Tischhauser, forecasts that each $1 billion invested in Bitcoin could result in a $20 billion increase in market capitalization. Key points include:
- Investment in Bitcoin triggers significant multiplier effects due to its limited supply.
- The scarcity of Bitcoin, with a total cap of 21 million coins, heightens sensitivity to large investments.
- A demand shock occurs when money influx surpasses available supply, leading to price increases.
- Tischhauser notes initial inflows may cause minor price rises, while subsequent investments are expected to drive larger surges.
- Potential demand drivers include governments, institutional investors, and corporate treasuries.
- The growth of stablecoins indicates increased funds entering the crypto market, suggesting potential for Bitcoin inflows.
- Historical data shows strong multiplier effects from last year's inflows, with expectations for improved conditions this year if central banks participate.