Kevin O’Leary, the prominent investor and Shark Tank host, has forecast that Bitcoin could soar to between $150,000 and $200,000 if the United States passes the CLARITY Act. The prediction, reported by CryptoNews, hinges on a massive influx of institutional liquidity from sovereign wealth funds and pension funds.
The CLARITY Act (Cryptocurrency Legal and Regulatory Integrity and Transparency Act) aims to define digital assets as commodities or securities under U.S. law, resolving jurisdictional conflicts between the SEC and CFTC. Key provisions include clear classification of Bitcoin and Ethereum as commodities, registration requirements for exchanges and custodians, investor protections, and tax simplification. This would reduce legal risk for institutions like pension funds, which have fiduciary duties and cannot invest in assets with unclear legal status.
O’Leary specifically noted that sovereign wealth funds from countries like Norway, Saudi Arabia, and Singapore are watching closely; these funds collectively manage over $10 trillion, and a 1% allocation would mean $100 billion flowing into Bitcoin. He argues that institutional investors managing trillions of dollars would create a 'whirlwind of institutional liquidity,' with pension fund mandates diversifying into alternative assets, sovereign wealth funds seeking inflation hedges, and insurance companies adding Bitcoin to reserves.
O’Leary’s prediction assumes passage within 12 to 18 months, with a possible vote in late 2025 or early 2026. He emphasized that the trend toward regulation is irreversible, noting that other countries like the UK and Japan are also moving toward clearer crypto rules, which could amplify the institutional wave if the U.S. leads.
