JPMorgan Chase investment bank has predicted Bitcoin demand will reach $600 billion in the future. The research note drafted by strategists, including Nikolaos Panigirtzoglou, mentioned in a research note that the recent Bitcoin adoption by mutual life insurance company MassMutual indicates the potential for additional institutional demand.
JPMorgan Chase outlined that if family offices, insurance companies, and pension funds decide to allocate a small percentage to cryptocurrencies, it will result in massive demand for bitcoin.
The bank research says that MassMutual’s Bitcoin purchases represent another milestone in institutional investors’ Bitcoin adoption. One can see the potential demand that could arise over the coming years as other insurance companies and pension funds follow MassMutual’s example, it added.
The American banking giant expects financial services companies from the US, EU, Japan, and the UK to allocate at least 1% of assets in Bitcoin, with an expected Bitcoin demand of $0.6 trillion.
Panigirtzoglou further said that despite a skewed near term outlook of bitcoin, the long-term picture looks positive.
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