According To Cathie Wood Of ARK, The Banking Crisis Spike In Bitcoin Will "Draw More Institutions."

The present banking crisis is putting the business model of Bitcoin BTC tickers down $28,382 on full display, and Cathie Wood, CEO of ARK Invest, predicts that over time, this will only "draw more institutions" to the BTC market.

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In an interview with Trade Algo, Wood discussed BTC's recent price increase and said its pricing behavior throughout the crisis "is likely to attract more institutions."

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She continued, "It was pretty educational that Bitcoin reacted so differently from the stock markets, in particular.

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Oliver Linch, the CEO of Seattle-based cryptocurrency exchange Bittrex, believes that institutional interest in Bitcoin may already be here.

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During an appearance on The Wolf Of All Streets podcast on March 21, Linch pointed out that several large banks invested in cryptocurrencies well before the recent financial crisis:

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"Institutional investment in cryptocurrencies is a hot topic during current bad market. Every major bank now has a significant cryptocurrency desk, not merely for trading but also for collaborations.

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But, he claimed that there is still a gap between crypto companies and traditional financial institutions, which has hampered institutional adoption over the past several months.

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The two sides are currently "locked in a bit of a rut," he added, and the "major change" won't occur until they cease competing for superiority. "Historically, those huge players have served as the biggest drivers of innovation."

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"Crypto doesn't compete with Goldman Sachs or with institutions. Whoever can do bitcoin better wins the race.

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Regarding how institutional interest will affect Bitcoin's price, Wood said in the interview that ARK Invest's $1–1.5 million price forecast for BTC by 2030 was based on an analysis of institutional investors' BTC allocations, which predicts that most companies will allocate between 2.5% and 6.5% to BTC in their stock holdings.

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These are the kinds of investments they'd have made in newly emergent asset classes, such as real estate in the 1970s and small-cap stocks in the 1980s and 1990s, continued Wood.

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On the other hand, Linch thinks that "aggressive" institutional adoption will happen if possibilities are easier to spot:

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"I guarantee they won't object if you show them how it can be done and how it can bring them money. They'll put everything they've got into seizing that chance.

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Since the failure of the banks Silvergate, Silicon Valley, and Signature, sentiment toward Bitcoin has improved. According to CoinGecko data, BTC has increased 43.6% since its most low point on March 11, compared to a 25.3% rise in the whole cryptocurrency market during that same period.