Bitcoin Compliment Bidding – Really, the biggest banks are no longer stopping their enthusiastic statements about Bitcoin (BTC) and cryptocurrencies. After Morgan Stanley experts who wonder that Bitcoin has all the chances to dethrone the dollar king, now those of JP Morgan are announcing a huge surge of institutional money in the cryptosphere.
Institutionals starting with big bets in crypto
Recently, mega-bank JP Morgan Chase & Co. had already shown its greatest optimism for Bitcoin, explaining that the king of cryptos has even greater growth potential than the gold market.
This time, JP Morgan analysts go even further and detail their reasons for being so crypto-enthusiastic. According to Bloomberg, which quotes the big bank strategists, the adoption of Bitcoin is said to be spreading among wealthy investors in insurance companies, family offices and pension funds.
The recent purchase of $ 100 million of bitcoins by the insurance fund Massachusetts Mutual Life Insurance (MassMutual) would also be blatant proof of the start of this institutional bullish wave:
“MassMutual’s Bitcoin purchases represent another milestone in the Bitcoin adoption by institutional investors,” the strategists said. “One can see the potential demand that could arise over the coming years as other insurance companies and pension funds follow MassMutual’s example.”
Bitcoin price x3
To support their thesis, the experts at JP Morgan explain that even if these large investment funds only diversify a very small part of their holdings in Bitcoin, this could already have a major impact on prices.
They calculated that, if pension funds and insurance companies in large economic areas (the United States, the euro zone, the United Kingdom and Japan ) allocate even 1% of their assets in Bitcoin, this would bring a fresh $ 600 billion injection into the BTC market.
When we know that the current valuation of all bitcoin created is $ 355 billion, we can say that it would be more than promising. This would propel bitcoin to over $ 50,000 per unit.
According to JP Morgan analysts, however, there is always the same and endless blocking or slowing factor that limits institutional investment in Bitcoin and cryptos: the regulatory obstacle. Existing regulations are indeed very poorly adapted to this new class of assets that are cryptocurrencies.
Despite these hurdles, big investment professionals now seem to have fully realized the incredible potential of Bitcoin and cryptocurrencies. The year 2021 could therefore be a pivotal year for the cryptosphere sector, that of institutional take-off!