Ric Edelman "Bitcoin to exceed $150,000 by year-end"...Betting on a rally driven by regulatory clarity

▲ Bitcoin (BTC), Wall Street/ChatGPT-generated image

A prediction has been made that the passage of the U.S. cryptocurrency market structure bill could be a major turning point for Bitcoin (BTC) and the cryptocurrency market. Ric Edelman, a figure in the financial advisory industry, predicted that if regulatory clarity is secured in the U.S., Wall Street funds would flow in earnest, and Bitcoin could exceed $150,000 by the end of 2026.

The Crypto Basic reported on May 14 (local time) that Edelman stated on the Milk Road podcast that the U.S. cryptocurrency market structure bill could trigger the next major bull run for Bitcoin and the cryptocurrency market. Edelman explained that if the bill passes, Wall Street would get a 'green light' to actively participate in the cryptocurrency market.

Edelman said he would not be surprised if Bitcoin closes above $150,000 by the end of 2026. He also maintained his previous forecast that Bitcoin could reach $500,000 before 2030. The Crypto Basic reported that he believes the cryptocurrency market could enter another powerful expansion phase the moment regulatory clarity is established in the U.S.

He also pointed out that traditional retirement portfolio strategies are out of date. In the conventional financial advisory industry, the so-called 60/40 portfolio, consisting of 60% stocks and 40% bonds, has been generally used. However, Edelman argued that considering the possibility of investors living to 100 in an environment of increasing life expectancy, an overly conservative asset allocation could lead to funds running out prematurely after retirement.

Edelman proposed an 80/20 model as an alternative. He believes that even in old age, 80% of a portfolio should be maintained in stocks and growth assets, and at least 10% of that should be allocated to cryptocurrencies. He added that growth-oriented young investors could allocate up to 40% to digital assets.

Regarding cryptocurrency allocation methods, he explained that various approaches are possible depending on the investor's risk appetite and market judgment, rather than concentrating on a single asset. Edelman mentioned Michael Saylor's logic of holding only Bitcoin but also pointed out that the use cases for Ethereum (ETH) and Solana (SOL) are expanding. He said that investors are also choosing a strategy of having a higher proportion of Bitcoin using a market capitalization-weighted approach while also holding Ethereum or Solana.

The catalyst he most strongly identified was the inflow of Wall Street funds. Edelman believes that traditional financial institutions like Morgan Stanley could rapidly expand cryptocurrency adoption after the passage of the U.S. cryptocurrency market structure bill. He explained that Morgan Stanley manages approximately $7 trillion in assets, and even if large financial institutions allocate only 2-3% of their portfolios to cryptocurrencies, a massive flow of funds could occur into Bitcoin and the entire cryptocurrency market.

Edelman analyzed that such institutional adoption could create price increases, and these price increases, in turn, could create a large 'flywheel effect' attracting more investors and corporate participation. He emphasized that artificial intelligence (AI) and cryptocurrency investments are not mutually exclusive, and that the two industries can grow together, citing examples of Bitcoin mining companies expanding into AI infrastructure and data center businesses.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*