Bitcoin to Reach $420K by Decade's End, Says Ric Edelman

Ric Edelman, founder of Edelman Financial Engines, forecasts bitcoin will reach $420,000 by the decade’s end. He explained that if 1% of the world’s $738 trillion in financial assets were allocated to bitcoin, it would result in $7.4 trillion in inflows, raising bitcoin’s price to $420,000.

Ric Edelman’s $420K Bitcoin Prediction

Ric Edelman, a financial advisor and founder of Edelman Financial Engines, predicts bitcoin will reach $420,000 by the end of the decade. In an opinion piece published by Think Advisor, Edelman discussed how significant planned allocations from financial advisors could drive the price of BTC. He described:

My analysis reveals that bitcoin will reach $420,000 by the end of the decade. I reach this figure based on simple arithmetic.

Edelman referenced surveys, including those by Franklin Templeton, revealing that over 75% of independent registered investment advisors (RIAs) plan to allocate 2.5% of their assets to bitcoin. With RIAs managing $8 trillion, this equates to $150 billion flowing into the cryptocurrency. He also speculated that additional allocations could come from family offices, pension funds, endowments, and other institutional investors.

The financial advisor noted that global financial assets total $738 trillion, a figure he calculated by adding the values of the global equity market, debt market, real estate market, gold market, cash market, bitcoin, and other assets as of Dec.31. This unique supply constraint underpins his analysis of bitcoin’s potential price rise.

Emphasizing bitcoin’s fixed supply of 21 million coins, he stressed: “If all the advisors, investors, and institutions that manage these assets were to allocate just 1% of their client portfolios to bitcoin, the total flows would be $7.4 trillion. Of the 21 million bitcoins that will ever exist, 19.4 million exist today — meaning the flows would increase each bitcoin by about $378,000.” Edelman continued, “Add in bitcoin’s current price,” which was about $42K as of Dec. 31, he concluded: “You get bitcoin’s future price: roughly $420,000.”

Do you agree with Ric Edelman’s prediction that bitcoin will reach $420,000 by the end of the decade? Let us know in the comments section below. #Write2Earn