Retail investors may soon find it difficult to buy Bitcoin as institutional adoption accelerates, warned 1inch co-founder Sergej Kunz at Cointelegraph’s LONGITUDE event in Dubai. Kunz says if the US starts acquiring Bitcoin, smaller countries could struggle to get it. Analysts predict Bitcoin prices could soar as high as $200,000 this year, potentially reaching over $1 million by 2029. Recent institutional demand is already driving significant inflows into Bitcoin ETFs.
Retail investors are facing a shrinking window to accumulate Bitcoin, with institutional adoption moving faster than many can keep up. Sergej Kunz, co-founder of the exchange aggregator 1inch, expressed these sentiments at Cointelegraph’s LONGITUDE event held in Dubai. He highlighted that Bitcoin is transforming into an alternative reserve currency, which inevitably raises institutional demand and risks sidelining retail buyers temporarily. “Every retail user should be thinking about getting at least one Bitcoin — because soon it might just be out of reach,” Kunz said.
The potential scenario, if the US were to start acquiring Bitcoin for its strategic reserves, could complicate matters for other smaller nations looking to purchase the cryptocurrency. Kunz voiced confidence that we could soon witness countries vying for their Bitcoin holdings, with the US expected to lead the charge. “This is the direction we’re heading towards — a competitive arena for Bitcoin acquisition,” he said.
The global demand for Bitcoin has spiked, notably following US tariff announcements in April by then President Donald Trump, which initiated a global trade war. In this context, Yat Siu, co-founder of Animoca Brands, pointed out during the panel that Bitcoin remains a unique hedge against inflation and geopolitical strife, a true cross-border asset.
The week of April 21-25 saw Bitcoin exchange-traded funds (ETFs) garner over $3 billion in inflows, as institutional investors turned to this so-called “digital gold” amidst ever-growing economic uncertainties. Analysts forecast that the demand from financial institutions may escalate Bitcoin prices to an astonishing $200,000 each by the end of this year. Looking further ahead, institutional adoption could potentially push Bitcoin’s price over $1 million by 2029, according to André Dragosch, who heads European research at Bitwise.
Interestingly, experts like David Siemer, co-founder and CEO of Wave Digital Assets, suggest that economic instability has historically been a catalyst for increased institutional interest in digital assets as a way to diversify. As of May 1, data from BitcoinTreasuries.NET indicates that Bitcoin ETFs and other institutional funds collectively hold more than $128 billion worth of Bitcoin. The corporate treasuries add roughly $73 billion more.
When we look at sovereign states, the picture is quite significant. The US, China, and the UK together possess over $130 billion in Bitcoin. However, it’s worth noting that a considerable portion of this figure comprises crypto assets seized by law enforcement rather than outright purchases of Bitcoin in the market.
