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As BTC market capitalization fast approaches the $200 billion mark, Messaris Lead researcher,Ryan Watkins has crunched the numbers and predicts that ifleading financialinstitutions allocate just 1% of their portfolios toBitcoin, then BTCs market cap could rise to above $1 trillion,

The lead researcher also explained that a small percentage allocation from endowments and foundations, sovereign wealth funds, pension funds, mutual funds and family offices, to BTC would result in around $480 billion of new money entering theBitcoinmarket.

An aggregate 1% institutional allocation to Bitcoincan easily bringBitcoins market cap above $1 trillion, or over $50,000 per BTC, Watkins added.

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READ MORE: About 33% of pension funds, hedge funds now own digital assets such as Bitcoin

Recall that the power of BTC whales, professional traders in theBitcoin market cannot be overlooked. They are the most important players to large market movements in the BTC market, such as those levels seen during Bitcoinsdramatic price decline in March as the COVID-19 pandemic intensified around the world.

With more people looking to tradebitcoin, which is only becoming scarcer following the recent halving,bitcoinmoving from the investment bucket into the trading bucket could become a crucial source of liquidity. However, one would expect this will only happen ifbitcoinsprice rises to a level at which long-term investors are willing to sell,Chainalysisresearchers wrote.

READ ALSO: Zilliqa, the fast-rising cryptocurrency that has gained more than 845% since March

Chainalysisa leading crypto analytic firm also explained activities in the BTC market for the month of June. The report said;

As of June 2020, roughly 18.6 millionBitcoinhas been mined. We break that 18.6 millionBitcoindown into three buckets based on its movements to date:

Roughly 60% of thatBitcoinis held by entities either people or businesses that have never sold more than 25% ofBitcointheyve ever received, and have often held on to thatBitcoinfor many years, which we label asBitcoinheld for long-term investment.

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Another 20% hasnt moved from its current set of addresses in five years or longer. We consider this lostBitcoin. That leaves just 3.5 millionBitcoinor 19% of all minedBitcointhat moves frequently, primarily between exchanges, which we label asBitcoinused for trading.

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83% of BTCs addresses are smiling to the Bank - Nairametrics