Kraken Exec: Institutions and Retail Will Put Trillions of Dollars Into Bitcoin

Recently, Dan Held, Head of Growth at crypto exchange Kraken, explained why he believes the price of Bitcoin is set to go much higher in the next couple of years.

According to a report by The Daily HODL, in a video released on his YouTube channel last Tuesday, Held said that this Bitcoin cycle is very different all of the previous cycles:

What’s really unique about this cycle though, and I’ve been around for all the other cycles… this one is very different. Never before has it had such strong fundamentals against a macro backdrop which highlights exactly why it’s needed… 

Never before have we seen Dutch GDP ratios like this. Never before have we seen inflation this high. It is truly unprecedented. This is what’s so interesting that folks don’t think that they need Bitcoin until this moment happens when it shakes them out of their reality and they go ‘Oh, I get why Bitcoin’s valuable.’ Just like getting earthquake insurance. Most people don’t think about getting earthquake insurance until an earthquake hits… And Bitcoin is exactly like that, it’s insurance against money and devaluing of money by governments and the lack of trust of banks.

Held also explained why institutions are finally investing in Bitcoin:

So Covid brought Bitcoin’s focus and value and made it really obvious for the world. And because of that, a new participant entered, the institutions… Institutions post-Covid were searching for a safe store of value. You’ve got $18 trillion of negatively yielding sovereign debt and Bitcoin offers such a greater value than gold… These institutions manage over a $100 trillion…

What’s going to happen in 2021 and 2022 when everywhere you can buy Bitcoin: every bank, every brokerage. All that pent up purchasing and demand for Bitcoin flows into the market. So you get the institutions and retail who are going to flow trillions of dollars into Bitcoin over the next couple of years. And that’s why I think this is a supercycle. What happens when ownership of Bitcoin moves from 0.01% of the world to 1%? A 100x increase. Price will move much more than that.

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