Institutional adoption of Bitcoin is rapidly increasing, potentially pricing retail investors out of the market. Sergej Kunz, co-founder of 1inch, warned at Cointelegraph’s LONGITUDE event that retail users should secure Bitcoin soon, as demand may hike prices significantly. Current trends show institutional investments hitting record levels, with forecasts suggesting potential prices reaching up to $1 million by 2029, raising concerns about retail accessibility.
As institutional interest in Bitcoin grows, retail investors are feeling the heat, particularly as it may become increasingly difficult to accumulate the cryptocurrency. Sergej Kunz, co-founder of exchange aggregator 1inch, recently expressed concerns during Cointelegraph’s LONGITUDE event in Dubai. He warned that Bitcoin could become unaffordable for average users, saying that every retail investor should think about securing at least one Bitcoin soon. “Very soon they won’t be able to afford it,” Kunz remarked.
The scenario could become more complex if the United States decides to start acquiring Bitcoin for its strategic reserves. According to Kunz, this would lead to tighter competition amongst countries for Bitcoin, with the US likely taking the first initiative. “I’m pretty sure we’ll soon see countries battling over who owns more Bitcoin,” he said.
Demand for Bitcoin notably surged after US President Donald Trump slapped tariffs on imports back in April, igniting a global trade war. Animoca Brands co-founder, Yat Siu, noted during the discussion that in times of hesitation and economic instability, “the only thing that still acts as a true hedge — across borders, against inflation — is Bitcoin.” This statement reinforces the view that Bitcoin is evolving into a digital form of gold.
During the week of April 21-25, Bitcoin ETFs saw an influx of over $3 billion, indicating that institutional investors are increasingly viewing Bitcoin as a safe haven amid economic turbulence. Analysts have cited forecasts suggesting that Bitcoin prices could soar up to $200,000 by year-end, and by 2029, we might see prices exceeding $1 million due to heavy institutional adoption. Bitwise’s head of European research, André Dragosch, made these predictions based on observed trends.
David Siemer, the co-founder and CEO of Wave Digital Assets, also weighed in, noting that economic uncertainty has historically driven institutions towards digital assets as part of their diversification strategies. Current data from BitcoinTreasuries.NET highlights that as of May 1, institutional funds and Bitcoin ETFs collectively own over $128 billion in Bitcoin. Corporate treasuries are holding another $73 billion, demonstrating significant institutional investment.
On a governmental scale, major sovereign nations like the US, China, and the UK have amassed over $130 billion worth of Bitcoin, though it’s important to mention that much of this has come from crypto assets seized in law enforcement actions as opposed to direct market purchases. This further complicates the landscape of Bitcoin ownership and availability for retail investors, as institutional players dominate the field.
As the crypto world continues to evolve, one thing seems clear: the race for Bitcoin is heating up and retail investors may soon find themselves on the outside looking in as institutional forces increasingly take the lead.
