The purchase of Bitcoin worth US $ 100 million by the insurance company Mass Mutual recently, responded positively by JPMorgan. Bitcoin Demand Signals are getting more vigorous, said JPMorgan.
Reporting from Forbes, (12/14/2020), the insurance company's investment move also indicates the potential for other demands by different companies for Bitcoin in the coming years.
“MassMutual Bitcoin purchases represent another milestone in the adoption of Bitcoin by institutional investors. One can see the potential demand that could arise in the coming years as insurance companies and other pension funds follow MassMutual's lead, "said Nikolaos Panigirtzoglou of JPMorgan.
Bitcoin has slumped after hitting a record in early December 2020, but is still targeting the US $ 20,000 level, which has yet to be reached.
Proponents argue the huge crypto asset is gaining more recognition as a diversified portfolio amid dollar weakness, somewhat akin to gold.
On the other hand, remain vigilant about such large claims because the world of crypto assets is vulnerable to high volatility and scandalous attacks.
JP Morgan also added that if pension funds and insurance companies in the US, euro area, UK and Japan allocated just 1 percent of their assets to Bitcoin, it would generate an additional US $ 600 billion in demand for Bitcoin.
