A $600 billion tsunami for Bitcoin? JP Morgan warns: there won’t be enough for everyone
Bidding compliments for Bitcoin – The biggest banks are definitely not stopping their enthusiastic statements about Bitcoin (BTC) and cryptomoney. After Morgan Stanley’s experts wondering whether Bitcoin might have a chance of dethroning the dollar king, JP Morgan’s experts are now announcing a huge outpouring of institutional money into the cryptosphere.
The institutional players in the starting blocks of the cryptos market?
Recently, the mega-bank JP Morgan Chase & Co. had already shown its greatest optimism for Bitcoin, explaining that the king of cryptos had even greater growth potential than the gold market.
This time, JP Morgan’s analysts go even further and detail their reasons for being so crypto-enthusiastic. According to the Bloomberg newspaper, which Bitcoin Machine quotes the big bank’s strategists, the adoption of Bitcoin is spreading among wealthy investors from insurance companies, family offices and pension funds.
The recent purchase of $100 million of Bitcoin by the Massachusetts Mutual Life Insurance Fund (MassMutual) would be a clear proof of the start of this institutional bull market:
„MassMutual’s purchases of BTC represent a new stage in the adoption of Bitcoin by institutional investors (…). One can then imagine the potential demand that could appear in the years to come, if other insurance companies and pension funds follow MassMutual’s example. »
The total valorisation of Bitcoin… x3?
In support of their thesis, JP Morgan experts 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 major economic areas (the US, the Eurozone, the UK and Japan) were to allocate even 1% of their assets to Bitcoin, this would lead to an injection of $600 billion in new money into the BTC market.
Given that the current valuation of all bitcoin created is $355 billion, this would be more than promising. It would propel bitcoin to over $50,000 per unit.
According to JP Morgan analysts, however, there remains the same age-old blocking or slowing factor that limits institutional investment in Bitcoin and cryptos: the regulatory hurdle. Existing regulations are poorly adapted to this new class of assets that is cryptomoney. Some countries even complicate matters further (crow!).