Bitcoin Is 'Too Big To Ignore'—Even For Wall Street's Biggest Players
The Kobeissi Letter has said Bitcoin has become "too big to ignore.'
'Simply put, institutional capital can no longer ignore the returns that Bitcoin is providing,' the market analysis platform run by prominent market commentator Adam Kobeissi said Tuesday on X. 'When an asset provides a return of 90% in one year, it can be ruled an 'outlier.' However, when an asset provides a 90% CAGR for 13 years (Bitcoin), it can no longer be ignored.'
Kobeissi said that now, even conservative asset managers were allocating at least 1% of their assets under management to Bitcoin, citing conversations at The State of Crypto Summit 2025 hosted by Coinbase (NASDAQ:COIN) in June. They added that any remaining reservations these fund managers may have had were taken away with the cryptocurrency sector's newfound government support.
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Kobeissi estimated that an additional $300 billion could flow into Bitcoin if 1% of U.S. institutional capital, estimated to be around $31 trillion, was allocated to Bitcoin. The figure is nearly 10 times the $38 billion in inflows the asset received from spot Bitcoin exchange-traded funds in 2024, which helped it to an impressive 150% run.
The case for Bitcoin becomes even more appealing if one assumes that not just U.S. funds are allocating to the asset. Kobeissi said in a scenario where global funds allocate 1% to Bitcoin, about $1 trillion could flow into the asset.
Already, Bitcoin is up 28% year-to-date, the best-performing asset of 2025 so far, marginally edging gold's 27%.
The asset's outperformance comes amid outsized demand from institutions and public corporations. As recently highlighted by Bitwise investment chief Matt Hougan, spot Bitcoin ETFs alone are gobbling up thousands of BTC daily, while the network is only producing roughly 450 BTC daily.
Trending: New to crypto? on Coinbase.
Meanwhile, public corporations led by MicroStrategy (NASDAQ:MSTR) continue to aggressively accumulate the asset as well. On Monday, the firm announced that it had added 4,225 BTC worth nearly $500 million to its holdings, bringing its total stash close to 602,000 BTC worth over $70 billion.
Amid these trends, analysts at Bernstein and Bitwise see Bitcoin topping $200,000 by year-end. At last look, the asset is trading near $120,000.
'You may call us 'believers' but we suspect we may have crossed the 'belief' stage,' Bernstein Global Digital Assets Senior Analyst Gautam Chhugani said in a Monday note.
'I think it has a long way to go,' Hougan told CNBC last week. 'I think it could end the year closer to $200,000. So I would get used to this story of new all-time highs.'
Meanwhile, Bitcoin's fundamentals are likely to benefit from House approvals of the GENIUS, CLARITY and the Anti-CBDC Surveillance State acts.
Hougan said in a Monday note that the passage of these key cryptocurrency bills in the House would mark a new era for cryptocurrencies by minimizing risk, which would encourage Wall Street to fully jump in.
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This article Bitcoin Is 'Too Big To Ignore'—Even For Wall Street's Biggest Players originally appeared on Benzinga.com
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