$1 trillion is a conservative market cap for Bitcoin, said investment CIO

Bitcoin has recently seen ample interest from a number of mainstream companies and persons, such as billionaire hedge funder Paul Tudor Jones.

This could be the beginning of a new wave of Bitcoin buyers, according to Brian Estes, chief investment officer and managing partner at Off the Chain Capital - an investment firm focused on blockchain and digital assets.

A growing number of companies are looking to Bitcoin as part of their treasury fund equation.

Two of the latest entrants to the Bitcoin ecosystem, MicroStrategy and Square, recently bought approximately $425 million and $50 million worth of BTC respectively.

Collaborating with a number of its partners, Off the Chain crunched a few numbers based on hypothetical scenarios, matching each company's presumed investment capability with possible Bitcoin purchases.

"The multiplier effect for every dollar that goes into Bitcoin, Bitcoin goes up somewhere between $20 and $100 in market cap," Estes explained.

"If there's $1 million in Bitcoin bought, the market cap of Bitcoin goes up between $20 million and $100 million."

On the low end of the spectrum, multiplying the $40 billion estimate by twenty would boost Bitcoin's market cap by $800 billion, Estes speculated.

This would push Bitcoin's market cap past $1 trillion, up from its current $222 billion evaluation.

"If 1% of treasury reserves from public companies go into Bitcoin, Bitcoin is a trillion-dollar market cap, on the conservative side, and it could be a $5 trillion dollar market cap if we use the 100 number," Estes explained.