The investment bank JPMorgan Chase believes that it may be possible for Bitcoin (BTC) to receive a $600 billion inflow in the future. This comes after MassMutual $100 million purchase in BTC last week. As reported by Bloomberg, analysts believe that demand among institutions is starting to increase.
$600 Billion Could Flow Into Bitcoin
MassMutual, one of the oldest insurance companies in the United States has acquired $100 million in BTC. The goal was to get exposure to the crypto market. Now, the firm is holding around $100 million worth of BTC.
This comes after large purchases of BTC from MicroStrategy. The company bought more than 41,000 BTC and they want to increase their presence in the market even further. This shows that there is a large interest from firms to get involved in the crypto market.
Moreover, these investments show that family offices and wealthy investors want to have BTC in their portfolios. JPMorgan Chase strategists believe that even if firms and larger investors palace their funds in the crypto market, that already represents a change in the way institutions consider Bitcoin and cryptocurrencies.
About the recent decision of MassMutual to buy BTC, JPMorgan strategist stated:
“MassMutual’s Bitcoin purchases represent another milestone in the Bitcoin adoption by institutional investors, One can see the potential demand that could arise over the coming years as other insurance companies and pension funds follow MassMutual’s example.”
It is worth mentioning that in recent months, Bitcoin was able to grow to new all-time highs. Although the ATH was surpassed by just a few dollars, the market remains bullish for BTC and other cryptocurrencies.
As reported by Bloomberg, if pension funds and other companies could help the market receive an additional $600 billion. At the time of writing this article, Bitcoin has a market capitalization of $355 billion. Furthermore, in the last 24 hours, the largest cryptocurrency in the world experienced gains of 1.10%.
Although altcoins are also moving higher, this seems to be a rally pushed mostly by Bitcoin. Its dominance remained stable in the last months and most of the altcoins were able to register smaller gains than BTC. Users are also excited about the future of Ethereum (ETH), XRP and Litecoin (LTC).
Each of the above-mentioned networks is working on a wide range of projects. The future looks bright for cryptocurrencies if new investments continue to flow into Bitcoin.