Cryptocurrency Market Update: Bitcoin liftoff to $350,000 in motion – Kraken Intelligence

• Bitcoin set for a roll-up to $350,000 but it will take 24 years to achieve these levels according to a report by Kraken Intelligence.
• The United States is over the next decades experience the largest wealth transfer in history: Baby Boomers to Generation X and the Millennials.

Researchers at Kraken exchange have released a report that majestically places Bitcoin price at $350,000. However, the journey to the ‘moon’ will not take place in a fortnight but over a long period of time – allowing the transfer of trillions of dollars from one generation to the next.

The great wealth transfer

Kraken Intelligence team says that the coming decades will experience a significant wealth transfer in the history of the United States. The ‘Baby Boom’ generation is expected to pass on its wealth to two generations; ‘Generation X’ and the ‘Millennials’ mainly in the US. As the wealth transfer materializes, a shift in investment trends is envisioned and Bitcoin tends to stand out among other assets.

In a report titled “Inheriting USDs & Acquiring BTCs: How ‘The Great Wealth Transfer’ Will Fuel ‘The Great Bitcoin Adoption,’” Kraken exchange research team attempts to explain how such a shift in investment trends coupled with trillion dollars of inherited wealth will impact the price of Bitcoin. With all the above factors taken into account, the team crunched the numbers to predict a $350,000 price per Bitcoin by 2044.

Assuming a 5% investment allocation and a 2% inheritance tax, by 2044 Gen X and Millennials could invest an estimated $971 billion into Bitcoin as they inherit wealth. World investment could make this figure much higher.

Here’s a projection showing the estimated flow of assets as the Baby Boom generation declines and transfers its wealth to Gen X and Millennials. Almost 70% of the total $70 trillion transfer will occur in the next 10 years.

Relative to marginal supply, the implied price of Bitcoin in 2044 would be about $350,000 (assuming the $971 billion investment).

The prediction also took into account research published in 2019 by Blockchain Capital. The firm survey found that 42% of the correspondents ranging between 18-34 expressed interest in the purchase of Bitcoin in the next few years. At the same time, only 8% of the correspondents in the ages 65 and over were open to investing in Bitcoin.

At the of writing Bitcoin is trading at $6,627. The most traded cryptocurrency has lost 0.97% of its value on the day after correcting lower from $6,691. Despite the decline, Bitcoin remains in a bullish trend. At the same time, the low trading activity suggests that the resistance at $7,000 will take longer than expected to overcome.

  

 

 

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