There Could Be $ 600 Billion in Demand for Bitcoin (BTC), According to Banking Giant
Insurers and pension funds could follow MassMutual’s example of buying BTC, which could bring $ 600 billion to the market.
JPMorgan Chase & Co, the American multinational investment bank, believes Bitcoin has attracted the attention of institutional investors and that more acquisitions could take place. The giant bank has named MassMutual insurance company’s $ 100 million purchase of BTC as a major milestone.
Institutions to double bitcoin (BTC)
The global events that followed the covid-19 outbreak rocked the world economy. Whether this is the case, the maturation of Bitcoin, the halving, or something completely different, the reality is that a large number of large companies, leading investors and institutions have begun to realize the potential of BTC and buy it in large quantities.
One of the latest such moves came from insurance giant the Massachusetts Mutual Life Insurance company (MassMutual). The Springfield, Massachusetts-based company announced the acquisition of $ 100 million worth of bitcoin.
JPM stressed the importance of the acquisition in its latest report, quoted by Bloomberg. MassMutual’s approval of BTC suggested that “Bitcoin use has also spread from family offices and wealthy investors to insurance companies and pension funds,” the bank’s strategists said.
Even small purchases can result in significant market movements for the cryptocurrency, although the newspaper said it was unlikely that insurance companies and pension funds would “always make high allocations.” 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 could see potential demand rise 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 did indeed continue to allocate funds to the asset.
Even a relatively small 1% acquisition from such firms in the US, Europe, the UK and Japan could result in “an additional $ 600bn of Bitcoin demand,” analysts said.
It is worth noting that such a significant figure is significantly higher than BTC’s current market value, which is about $ 350 billion. As a result, it will have a huge impact on the price of the asset, which may lead to some optimistic forecasts for subsequent years being reached.
Bloomberg analysts forecast a market capitalization of $ 1 trillion next year and a price of $ 50,000 per Bitcoin. Dan Held of the Kraken raised the bar even higher and said that even $ 288,000 could be at stake.