Retail investors must act quickly to accumulate Bitcoin as institutional adoption rises, according to Sergej Kunz from 1inch. If governments, especially the US, begin stockpiling Bitcoin for reserves, retail consumers might soon be priced out. Demand for Bitcoin, labelled as ‘digital gold,’ is growing amid global economic uncertainty, with predictions suggesting Bitcoin could reach $200,000 by year’s end.
Retail investors face a tightening window to accumulate Bitcoin as institutions ramp up their adoption. Sergej Kunz, co-founder of 1inch, expressed this concern at Cointelegraph’s LONGITUDE event in Dubai, underlining that Bitcoin’s trajectory as an alternative reserve currency is a significant factor in this shift.
Kunz indicated that retail users should consider getting at least one Bitcoin promptly, warning that soon it might be beyond their financial reach. He pointed out that if the US begins purchasing Bitcoin for its strategic reserves, even smaller nations might find it tough to acquire the cryptocurrency. “Countries will eventually be competing to see who can hold more Bitcoin,” he commented, with the US likely leading the charge.
The recent increase in Bitcoin demand can partly be attributed to global economic tensions, kicked off by President Trump’s tariffs on US imports earlier in April. Yat Siu, co-founder of Animoca Brands, highlighted Bitcoin’s unique position as a hedge against inflation, noting it remains a reliable store of value across borders despite the turbulent economic climate.
During a week in late April, Bitcoin ETFs saw inflows surpassing $3 billion as institutions flocked to what some are calling “digital gold.” Analysts predict this demand from financial institutions could escalate Bitcoin’s price to $200,000 within this year. By 2029, some forecasts even suggest Bitcoin prices could exceed $1 million largely driven by institutional hunger for the asset, according to André Dragosch from Bitwise.
Noteworthy, David Siemer, co-founder and CEO of Wave Digital Assets, mentioned that economic uncertainty has historically prompted institutions to explore digital assets as a means of diversification. Currently, data from BitcoinTreasuries.NET indicates that as of May 1, Bitcoin ETFs and other institutional investment vehicles are holding at least $128 billion worth of Bitcoin. Corporate treasuries are estimated to manage an additional $73 billion.
On a national level, countries such as the US, China, and the UK collectively hold over $130 billion in Bitcoin; however, a sizable portion of these assets consists of crypto seized by law enforcement rather than purchased Bitcoin. This further complicates the acquisition landscape for retail investors who may find fewer pockets of opportunity as institutional involvement increases.
