Bitcoin price shows northward momentum owing to rising confidence among institutions. The institutional developments and money inflow in Bitcoin have triggered investor optimism in the market.
After a strong correction last week, Bitcoin (BTC) reclaimed the price of $19,000 over the past weekend. At press time, Bitcoin (BTC) is trading at a price of $19,126 with a market cap of $355 billion. Market analysts are saying that the recent Bitcoin price movement fuels the sentiment of a bull market. The Bitcoin price growth is widely associated with the growing interest from the side of institutions.
Bitcoin back above the meme trend line after yet another higher-low on the trend
Looking for a close back above $19,385+
“Buy-the-dip” only works in bull markets and apparently, Bitcoin is showing yet again that this is a bull market pic.twitter.com/3TevmuDkLi
— Josh Rager ? (@Josh_Rager) December 13, 2020
The BTC price bounced from the crucial levels of $18,600 and soon after MassMutual announced its $100 million investment in Bitcoin through NYDIG. Earlier last week, Bitcoin (BTC) faced strong resistance at $19,500 after which it started moving downwards. Post that, it has been constantly moving sideways breaking multiple support levels.Just before the MassMutual news broke out, BTC price also slipped below $18,000 levels. Well, if BTC now manages to move past $19,500 levels, it will act as the new support as the BTC price will aim for $21,000 in the coming days. Probably, we expect a good start to 2021 and the Bitcoin bull run to trigger again.JPMorgan strategists have recently lauded the latest Bitcoin investment by MassMutual and said that it hints at an additional institutional demand for the world’s largest cryptocurrency. In a note to clients last Friday, JPMorgan said that Bitcoin adoption is slowly spreading across family offices, wealthy investors, pension funds and insurance firms. As reported by Bloomberg, the JPMorgan strategists noted:
“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.”
JPMorgan said that even if insurance firms and pension funds pour an additional 1% of their assets into Bitcoin, it can create an additional Bitcoin demand of $600 billion.Wealthy Investors and Institutions Start Accumulating Funds in BitcoinJust as Bitcoin gives an opportunity with any correction, wealthy investors are jumping to grab. The host of CNBC’s Mad Money – Jim Cramer – said that he purchased a few BTCs soon as the price dipped below $18,000 last Friday. He said:
“I will buy – like I usually do – as something comes down. I’ll get bigger and bigger and bigger. I just think that you want to diversify into all sorts of asset classes. I have gold. I’m going to diversify into some Bitcoin – not a big position for me – but it’s certainly important to be diversified, and Bitcoin is an asset and I want to have a balance of assets.”
However, Cramer notes that the price of Bitcoin (BTC) can come down once again looking at the history of its price volatility. He thinks that $17,000 is a “decent level” to buy Bitcoins at the moment. On Saturday, business intelligence firm MicroStrategy also announced the completion of its $650 million offerings of convertible notes.
MicroStrategy Completes $650 Million Offering of 0.750% Convertible Senior Notes Due 2025 https://t.co/37y84GToPe
— Michael Saylor (@michael_saylor) December 11, 2020
As per its CEO Michael Saylor, a majority of the proceeds will go into Bitcoin (BTC). The firm has already invested a whopping $475 million in BTC so far in 2020. These additional proceeds will take the firm’s total investment above $1 billion.next