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JPMorgan expects another $ 600 billion in Bitcoin investment

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HURRY! $600 BILLION Will Move Into Bitcoin! JP Morgan Explains! The Wealthy Are Jumping Into Crypto

JPMorgan expects another $ 600 billion in Bitcoin investment

JPMorgan expects another $ 600 billion in Bitcoin investment
CONTENT

  • Bitcoin capitalization could potentially grow by $ 600 billion

  • JPMorgan analysts expect institutional investors to come soon

  • Regulators can prevent massive entry into the crypto market, analysts say

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A large US financial conglomerate predicts an increase in the capitalization of bitcoin by $ 600 billion in the event of the arrival of institutional investors

JPMorgan expects another $ 600 billion in Bitcoin investment

Institutional demand for cryptocurrency will grow in the coming years. This opinion was reached by analysts of the American bank JPMorgan after it became known that the insurance giant Massachusetts Mutual Life Insurance (MassMutual) invested $ 100 million in bitcoin. 

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Experts agreed that large investors, from family offices and wealthy investors to insurance giants and pension funds, are ready to accept Bitcoin as a financial instrument. The latest large-scale injections from companies confirm this..

“MassMutual’s Bitcoin purchase is another milestone in institutional investor adoption,” JPMorgan said.

Despite the insignificant size of investments (MassMutual’s revenue is almost $ 30 billion), even a small shift towards digital assets already speaks of the development of the crypto market, the bank’s experts note..

Doubling capitalization

JPMorgan has also calculated the size of the potential demand for the leading cryptocurrency in the coming years. Other insurance companies and pension funds may soon announce investments in the crypto market, following the lead of MassMutual:

JPMorgan expects another $ 600 billion in Bitcoin investment

“We look forward to potential demand in the coming years as other insurance companies and pension funds follow MassMutual’s lead.”.

According to JPMorgan experts, if pension funds and insurance companies in the USA, Europe, Great Britain and Japan allocate at least 1% of assets for investments in Bitcoin, the volume of injections will exceed $ 600 billion.

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Source: coinmarketcap.com

Note that according to CoinMarketCap, the current market capitalization of bitcoin is almost $ 356 billion. The price of bitcoin in the BTC / USDT trading pair is $ 19,152.

However, JPMorgan acknowledges that regulatory and legal obstacles could slow the massive entry of large players into the crypto market. The bank believes that regulators are able to prevent the pumping of Bitcoin capitalization with institutional money due to the unjustified level of risk and inconsistency of obligations when investing in cryptocurrencies.

Long-term threat

However, some companies are oblivious to the inconvenience and risks. Previously, the provider of business intelligence, as well as one of the largest holders of bitcoin, MicroStrategy, has successfully placed $ 650 million in convertible bonds for the further purchase of the digital asset..

MicroStrategy has already bought 40,824 BTC (about $ 781.8 million), new investments will almost double its investment in bitcoin.

In addition to MiscroStrategy, bitcoin is actively bought by the investment fund Grayscale, as well as the Square fintech service. Earlier, JPMorgan noted earlier that if funds like Grayscale continue to build up their crypto assets, Bitcoin will push gold as a defensive asset..

JPMorgan expects another $ 600 billion in Bitcoin investment

A shift in institutional interest towards bitcoin will lead to an outflow of billions of US dollars from the precious metals market, experts say.

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