Bitcoin Halving Impact Fades as Demand Takes Center Stage
According to reports, the Open Interest in Bitcoin is now 30 times higher than it was 11 days before the 2020 Bitcoin halving.
MassMutual’s recent purchase of a whopping $100 million USD Bitcoin points that cryptocurrency s demand will continue to grow. This implication comes courtesy of strategists at JPMorgan Chase, America’s leading banking firm.
Nikolaos Panigirtzoglou, along with other JPMorgan strategists, has suggested that Bitcoin adoption has increased, taking the steps from family and retail offices to wealthier large-scale firms with the potential for massive investment. These larger investors include firms such as insurance corporations and pension funds.
The shift towards cryptocurrency
Bitcoin, any moves towards investing assets into cryptocurrency might be significant in the long-term.
Using calculations based on current pensions and insurance firms in the US, Euro, and Asian regions, Bitcoin could grow by over $600 billion with just a 1% increase in investments. This figure would nearly double the current market cap of Bitcoin, which would send the demand for Bitcoin sky-high.
In reference to the lump investment from MassMutual, the analysts wrote:
“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.”
Bitcoin price healthy as adopting is increasing
While Bitcoin price might have dipped after hitting a record high for 2020, the value of the cryptocurrency continues to knock on the door of $20,000 USD. Should it hit the next barrier of resistance and hold it, Bitcoin could surge into new areas of demand sooner than anticipated. Even if it does not surge and send to find the next level of support, there has been a tremendous interest that Bitcoin has gained since the global pandemic knocked the world and dethroned the US dollar. As Bitcoin continues to gain investor attention, the cryptocurrency will only continue to reach new levels.