According to the Banking Giant, Bitcoin (BTC) May Claim $ 600 Billion

Insurance companies and pension funds can follow MassMutual's example of buying BTC, which could bring $ 600 billion to the market.

American multinational investment bank JPMorgan Chase & Co believes that Bitcoin is attracting the attention of institutional investors and more purchases are possible. The giant bank named MassMutual's $ 100 million acquisition of BTC as a significant milestone.

Institutions to Double Bitcoin (BTC)

The global events that followed the COVID-19 outbreak shook the world economy. Whether it's the case, Bitcoin maturing, halving, or something entirely different, the truth is that a large number of large companies, leading investors and institutions have begun to recognize the potential of BTC and buy large quantities.

One of the latest moves of this kind came from insurance giant The Massachusetts Mutual Life Insurance Company (MassMutual). The Springfield, Massachusetts-based company announced that it has purchased $ 100 million worth of bitcoin.

JPM highlighted the importance of this acquisition in its latest report cited by Bloomberg. The bank's strategists argued that MassMutual's approval of BTC, "the use of Bitcoin has spread to insurance companies and pension funds after family offices and wealthy investors."

While the newspaper says that insurance companies and pension funds are unlikely to "always make high allocations", even small purchases can result in significant market movements for the cryptocurrency. Nikolaos Panigirtzoglou, one of the bank's leading analysts, said:

“MassMutual's Bitcoin purchases represent another milestone in the spread of Bitcoin by institutional investors. If other insurance companies and pension funds follow MassMutual's example, it can be seen that the potential demand will increase in the coming years. "

What Awaits Bitcoin (BTC)?

JPM's document went on to examine the potential impact on bitcoin if pension funds and insurance companies actually continue to allocate funds to the asset.

Even a relatively small 1% purchase from such firms in the US, Europe, UK and Japan could result in "an additional $ 600 billion in demand for Bitcoin", analysts said.

It should be noted that such a considerable number is significantly higher than BTC's current market value of about $ 350 billion. As a result, the asset will have a huge impact on its price, which may lead to some optimistic forecasts for the coming years.

Bloomberg analysts predict a market cap of $ 1 trillion next year and a price of $ 50,000 per Bitcoin. Kraken's Dan Held raised the bar even higher and said that even $ 288,000 could be involved.

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