Bitcoin Price Could Skyrocket to $840,000 as Advisers Boost Allocations
A new adoption model from U.S.-based financial services firm River suggests that Bitcoin's price could reach between $250,000 and $840,000 over the next three to five years. This projection is based on the potential for broader institutional and retail adoption, with a focus on investment advisers.
According to the analysis, only about 4% of the world's population owns any Bitcoin, while investment advisers on average hold just 0.008% of their assets in the cryptocurrency. The model assumes that 20% to 40% of all global portfolios will eventually allocate between 2% and 4% to Bitcoin.
This would translate to new Bitcoin investments of $1.3 trillion to $5.3 trillion, based on roughly $333 trillion in combined global financial assets. To estimate how these inflows would affect Bitcoin's price, River applied a multiplier based on historical market behavior, noting that for every $1 entering the Bitcoin market, the asset's market capitalization has historically risen by about $3.
The firm emphasized the structural feature of Bitcoin's fixed supply as a key reason why inflows have historically had an outsized impact on price. The analysis comes as institutional interest in digital assets continues to evolve, with spot Bitcoin exchange-traded funds and custody solutions making exposure more accessible to mainstream investors and advisers alike.