JPMorgan Projects Better Days for Bitcoin as Institutional Investors Troop in

2020 saw numerous prominent and institutional investors give recognition and take a huge stake in Bitcoin (BTC). Whether it as a result of the coronavirus-induced economic crisis, Bitcoin’s maturation, the recent BTC halving event, or something entirely different, the fact remains that Bitcoin has been further catapulted into the limelight this year.

One of the most notable entry into the market was the insurance behemoth Massachusetts Mutual Life Insurance Company (MassMutual). In a recent analysis, we reported that the company acquired $100 million worth of BTC just last week.

JPMorgan Chase & Co strategists have highlighted the significance of this purchase in a recent report by Bloomberg. The strategists explained that MassMutual’s adoption of Bitcoin suggests that family offices, wealthy investors, insurance firms, and pension funds have picked interest in the benchmark cryptocurrency.

Although the report suggests that pension funds and insurance companies will never make huge allocations, it also noted that even a small purchase by such organizations could have a significant effect on the market. The analysts stated that purchase as little as 1% from such firms in the US, Europe, the UK, and Japan would lead to an “additional bitcoin demand of $600 billion.”

Interestingly, this projected figure is higher than BTC’s current market valuation, which stands at $361 billion at press time. That said, Bloomberg analysts place a market cap for next year at $1 trillion and a price of $50,000 per BTC.

Key BTC Levels to Watch — December 14

Bitcoin is now trading within a tight range between $19,336 and $18,977 as its recent bull momentum dies out. That said, a break above the $19,500 mark could send it back into its ascending channel and precipitate a sharp rally above the highly-anticipated $20,000 all-time high.

However, a fall below the tight range could reduce the chances of Bitcoin breaking the $20,000 mark before the year runs out.

Meanwhile, our key resistance levels are at $19,350, $19,500, and $18,800. While our key support levels are at $19,000, $18,800, and $18,500.

Total market capital: $561 billion

Bitcoin market capital: $356 billion

Bitcoin dominance: 63.4%

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