The Kobeissi Letter reported Tuesday that institutional investors can no longer overlook Bitcoin, given its remarkable 90% compound annual growth rate (CAGR) over the past 13 years — a return unmatched by any other asset.
Even traditionally conservative funds are beginning to allocate at least 1% of their assets under management (AUM) to Bitcoin, as momentum builds for using BTC as a treasury asset.
Massive Institutional Capital Driving BTC Prices
Currently, U.S. institutions hold an estimated $31 trillion in AUM. According to Kobeissi, if just 1% of this institutional capital flows into Bitcoin, it could inject $300 billion into the market.
Adding $300 billion to Bitcoin’s current $2.34 trillion market cap could push prices approximately 13% higher — placing BTC around $133,000, a short-term target widely anticipated by analysts.
But this is only part of the story. When factoring in global institutional AUM, inflows exceeding $1 trillion into Bitcoin become plausible. Such a massive influx would boost BTC prices by roughly 70%, potentially driving the price close to $200,000.
“Bitcoin has simply become too big to ignore,” the report emphasized.
Institutional Demand Already Steering the Market
This surge could happen without any retail investor involvement. Institutional buyers are already behind the current market rally. For example, BlackRock has accumulated 717,388 BTC (3.6% of circulating supply), while Grayscale holds 601,550 BTC (3%). Together, these two control 6.6% of all Bitcoin, valued at approximately $155 billion.
With more institutional Bitcoin funds launching and corporations and even nation-states adding BTC to their treasuries, the long-term outlook for Bitcoin’s price remains strongly bullish.
Bitcoin’s Price Outlook
Although Bitcoin is currently retracing from its July 14 all-time high, down about 4.3%, it remains near critical support levels and was trading flat at $117,850 at the time of writing.
Consolidation could continue for a while before BTC resumes its upward trajectory toward the $130,000 mark. The recent dip reflects profit-taking by long-term holders rather than institutional selling, according to Glassnode, which noted one of the largest profit realization days this year driven by these holders.
