JPMorgan - bitcoin may find an additional demand of $600B

[markleal]

A  JPMorgan statement says bitcoin may find an additional demand of $600B read more...
This is due to the recent purchase amounting to $100M of bitcoin by MassMutual a 169 years old insurance firm in Massachusetts.
MassMutual is also listed as the top 7 Best Life Insurance Companies of 2020 in the US   
Due to this event, other institutions could follow the steps made by MassMutal, which will greatly increase the demand for bitcoin that consequently increase its value to break the 20k mark. What is your take on this?

[NeuroticFish]

What is your take on this?

We are waiting for many years for the institutional investors to come and buy into Bitcoin.
What I've learned over the years is that this ($600B) doesn't happen overnight and it could actually take years to happen.
Also keep in mind that the more money they have the better they can play some market manipulation to allow them buy cheaper and save a couple of millions here and there.

All in all, try to not have way too big expectations. The when element, when the big pumps would happen is still uncertain. It can be tomorrow or in years, with or without these news.

[Mauser]

A  JPMorgan statement says bitcoin may find an additional demand of $600B read more...
This is due to the recent purchase amounting to $100M of bitcoin by MassMutual a 169 years old insurance firm in Massachusetts.
MassMutual is also listed as the top 7 Best Life Insurance Companies of 2020 in the US   
Due to this event, other institutions could follow the steps made by MassMutal, which will greatly increase the demand for bitcoin that consequently increase its value to break the 20k mark. What is your take on this?

This is insane and very good for bitcoins. JP Morgan is just one other major American bank to promote bitcoins. With all these banks pushing the bitcoin price it can only go upwards in the future. There are many investors who believe in the JP Morgan research and are going to invest accordingly.

[Lorence.xD]

We are waiting for many years for the institutional investors to come and buy into Bitcoin.
What I've learned over the years is that this ($600B) doesn't happen overnight and it could actually take years to happen.
Also keep in mind that the more money they have the better they can play some market manipulation to allow them buy cheaper and save a couple of millions here and there.

All in all, try to not have way too big expectations. The when element, when the big pumps would happen is still uncertain. It can be tomorrow or in years, with or without these news.

600 billion dollars is a lot of money that is being projected by JP Morgan, that amount can be seen in a two years time if the increase of institutional investors is incremental. This investors definitely know what they are getting into and that is what scaring me the most, as an individual investor, market manipulation will be a bitch if you do not have an insider info which is completely alright with crypto because it is still in a grey area of legality.

[dothebeats]

It all started with Square Inc. acquisition of bitcoins, and in just a span of a few months we have huge companies looking for their options how to best penetrate the market. Just a year ago the shape of the scene lie dormant, up until someone disrupted the scene with hundreds of millions of dollars worth of bitcoin purchase. Now imagine even if half of that potential 600B comes pouring into the scene, bitcoin’s market cap is effectively doubled by just one industry.

The potential for $100k/bitcoin just got even more higher, and more closer to realization as well.

[davis196]

A  JPMorgan statement says bitcoin may find an additional demand of $600B read more...
This is due to the recent purchase amounting to $100M of bitcoin by MassMutual a 169 years old insurance firm in Massachusetts.
MassMutual is also listed as the top 7 Best Life Insurance Companies of 2020 in the US   
Due to this event, other institutions could follow the steps made by MassMutal, which will greatly increase the demand for bitcoin that consequently increase its value to break the 20k mark. What is your take on this?

The news about MassMutual buying 100M USD worth of Bitcoins was "exploited" by all crypto news websites.
The insurance industry has huge potential to create tremendous demand for Bitcoins and pump the BTC price.
Financial institutions like MassMutual investing over 600 billion dollars in the crypto industry would be insane.
However,this doesn't look realistic to me.The authorities(probably SEC) will start whining again about the cryptocurrencies being "too risky",so most of the institutional investors might decide to stay away from the crypto world.
 

[Lucius]

JP Morgan is just one other major American bank to promote bitcoins.

JPMorgan Chase & Co is not only one in a series of US banks, but it is the largest in the US and the seventh in the world in terms of total funds. Therefore, their statements carry considerable weight not only in the US market, but around the world.

JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City. JPMorgan Chase is ranked by S&P Global as the largest bank in the United States and the seventh largest bank in the world by total assets, with total assets of US$3.213 trillion. It is also the world's most valuable bank by market capitalization.

Financial institutions like MassMutual investing over 600 billion dollars in the crypto industry would be insane.
However,this doesn't look realistic to me.The authorities(probably SEC) will start whining again about the cryptocurrencies being "too risky",so most of the institutional investors might decide to stay away from the crypto world.

It is not even theoretically possible for MassMutual to invest $600 billion in anything when the total value of the company is only $235 billion. The $600 billion estimate comes from the speculation that all similar companies (pension funds & insurance companies) in the US, UK, EU and Japan invest only 1% of their funds in Bitcoin.

This is not impossible at all, and as for the SEC, they have already given approval to each company for such an investment - I don't see why they would suddenly change their minds. The risk in terms of volatility will slowly disappear because it will be increasingly difficult to manipulate the BTC market - such companies invest in the long run and know exactly what they are doing.

[el kaka22]

Just because companies are getting more and more involved with crypto doesn't mean it will always be like this, I think it just means we are going to see these kinds of days a bit more frequently but it is not going to be additional 600 billion dollars marketcap, it will be a lot less.

There was a test that calculated around 100 million dollars is enough to make bitcoin go 1% higher all by itself, obviously there are market movements and sometimes 100 million dollars would have a bigger impact depending on the market, but on a break even day where bitcoin doesn't move much, that is the secret number. This doesn't mean if you buy 500 million dollars it will go up 5%, it will be probably more, or sell 500 million and go down 5%, they create a wave of buys or sells, but this is the break even change number.

[masterzino]

Good news in general and could add some fuel in the bull run.

This demand could be real but will be spread over a decade or more. Institutional investors are slow, very slow. They are forced to follow different rules than millennium kids playing with coins.

[as.exchange]

You should remember what happened to Bitcoin last time when Goldman Sachs made comment like that... then everyone also was so happy and crazy buying BTC, while GS was selling all BTC for their clients via own subsidiary in Sweden

You better learn the lesson about the intentions and the real actions behind such comments (and especially by such people). They are not stupid to say something good to raise the market price, and then buy for themselves at ATHs.

[nasipadang]

Not quite sure about this information that's really a huge demand a $600B well I want to know if this were true if yes I really think that the price of Bitcoin will reach moon in no time. Right now we are on All Time High some people are planning to buy more at peak.

[fillippone]

Peanuts.
We are talking about peanuts here.
Bitcoin is going to see a massive inflow of money from institutional seeking for an uncorrelated asset.
Ultimately there will be a change in numeraire, where Bitcoin will become the base unit of account.
This is the only way Stock To Flow model can hold true without breaking after a couple of halvings.

[oHnK]

You should remember what happened to Bitcoin last time when Goldman Sachs made comment like that... then everyone also was so happy and crazy buying BTC, while GS was selling all BTC for their clients via own subsidiary in Sweden

You better learn the lesson about the intentions and the real actions behind such comments (and especially by such people). They are not stupid to say something good to raise the market price, and then buy for themselves at ATHs.

Yes, they say that for some purpose. Right now the market is going crazy again with a price of 20,000 USD. After the increase in the price of bitcoins in the market, they may sell their bitcoins so much that the price falls again. Then they buy back at a cheap price. Isn't it very easy to fry prices like that for those well-known companies and those who feel the impact are new buyers, and buyers of coins like me. Be wise in your attitude on every issue that develops, the market may fry hot issues but they turn out to be zonk.

[Vishnu.Reang]

Peanuts.
We are talking about peanuts here.
Bitcoin is going to see a massive inflow of money from institutional seeking for an uncorrelated asset.
Ultimately there will be a change in numeraire, where Bitcoin will become the base unit of account.
This is the only way Stock To Flow model can hold true without breaking after a couple of halvings.

Well.. I am not expecting such a massive inflow, amounting to hundreds of billions of USD. There should be massive global acceptance of Bitcoin, before we can talk about such a move from the hedge funds and wall street giants. Stock markets are being used by billions of people and they have been in existence for many centuries. It will be tough to match them, as far as acceptability is concerned.

[Fortify]

It seems crazy to associate an additional demand of $600 billion from a transaction of $100 million - the two figures are so far apart they might as well take a random guess because there doesn't seem to be any real extrapolation actually taking place here. You've always got to wonder how much banks have dumped into Bitcoin when they start hyping it up, as it would make their own assets worth more, that's probably the real driver for publishing such a report.

[exstasie]

Peanuts.
We are talking about peanuts here.
Bitcoin is going to see a massive inflow of money from institutional seeking for an uncorrelated asset.

Do you expect Bitcoin to cannibalize gold's market share? Or do you see them rising together and sucking money from other markets? Maybe a combination of both?

I ask because gold has traditionally been viewed as the quintessential non-correlated asset.

Ultimately there will be a change in numeraire, where Bitcoin will become the base unit of account.

You expect BTC to become the most common unit of account? Do you expect it to be the global reserve currency as well?

[AmoreJaz]

You should remember what happened to Bitcoin last time when Goldman Sachs made comment like that... then everyone also was so happy and crazy buying BTC, while GS was selling all BTC for their clients via own subsidiary in Sweden

You better learn the lesson about the intentions and the real actions behind such comments (and especially by such people). They are not stupid to say something good to raise the market price, and then buy for themselves at ATHs.

Yes, they say that for some purpose. Right now the market is going crazy again with a price of 20,000 USD. After the increase in the price of bitcoins in the market, they may sell their bitcoins so much that the price falls again. Then they buy back at a cheap price. Isn't it very easy to fry prices like that for those well-known companies and those who feel the impact are new buyers, and buyers of coins like me. Be wise in your attitude on every issue that develops, the market may fry hot issues but they turn out to be zonk.

just be vigilant in the market esp if you have money on the line. dont believe all the things that you are reading or speculation from "well-known" personalities. be alert of what may or may not happen. if you do want to secure your portfolio, you can sell some of it, and you know for sure, you are already making profit. greed is the common cause of our losses here. so better come up with a decision that you will not regret afterwards.
we will see huge numbers in play here, but the question is, will that really happen? so in either scenario, you should have your own strategies ready to implement with.

[tabas]

The effect will be effective immediately. We will never know how many institutions were already planning to acquire all of the new minted coins. That is what other institutions are doing such as Grayscale. And if all of them starts to buy.
One question is rounding.
Will these exchanges have sufficient bitcoin for them to sell?

[Princejebs]

Ever since this guys came on board with Bitcoin purchase, there has been lots of pumps with Bitcoin and some few altcoins, everyone should be careful and be on watch when Bitcoin start entering in and out of crypto exchanges. I don't hope the market collapse but if it happens like the past year, the damage wouldn't be good.
I wonder what will happen to the price 9f bitcoin by 2025

[Poker Player]

It all started with Square Inc. acquisition of bitcoins, and in just a span of a few months we have huge companies looking for their options how to best penetrate the market.

I saw Square's CEO talking about that in a video. He was saying that FOMO was going to be created among institutions inasmuch as other companies were buying and making it public. And he seems to be right. Companies that do not have bitcoin today and see that other companies are buying, in addition to the price increase will begin to think if it will not be better to buy today because tomorrow it will be more expensive.