Bitcoin Market Value may hit $600 Billion soon, says JP Morgan Chase.
GoldenNewsNg reports that America’s biggest and most valuable bank, JPMorgan Chase & Co, recently stated that if institutional investors from emerged markets allocated 1% of assets to Bitcoin, that would result in additional Bitcoin demand of $600 billion.
This means Bitcoin could almost double in valuation as it presently stands at $356 billion.
JPMorgan also revealed that the flagship crypto would attract more attention from institutional investors, and further buying pressures from such investors.
What this means: The leading financial juggernaut highlighted the recent $100 million Bitcoin buy from leading global insurer MassMutual as a significant turning point.
The report as retrieved from Bloomberg gave an in-depth analysis on why the odds are now with the flagship crypto asset trading near record highs.
“MassMutual’s Bitcoin purchases represent another milestone in the Bitcoin adoption by institutional investors,” JPMorgan 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 has dipped after hitting a record at the start of December but remains in sight of the $20,000 level, which it has yet to reach. Proponents argue the cryptocurrency is gaining more recognition as a portfolio diversifier amid dollar weakness, somewhat akin to gold. Others remain wary of such grand claims since the crypto world is prone to high volatility and bouts of scandal.”
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Recall that Massachusetts Mutual Life Insurance Co. recently bought about $100 million in Bitcoin for investment purposes.
The insurance giant acquired a $5 million minority equity stake in NYDIG, a subsidiary of Stone Ridge that offers crypto services to institutional investors.
NYDIG presently has about $2.3 billion in crypto assets under management, which would also help in facilitating custody services for MassMutual’s Bitcoins.
“The investment in Bitcoin will represent 0.04% of the general investment account of nearly $235 billion as of September 30,” MassMutual said.
