Bitcoin (BTC) Price Regains $19,000 Levels as Institutions Chip-In Once Again

On Dec 14, 2020 at 1:52 pm UTC by · 3 mins read

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.

https://twitter.com/Josh_Rager/status/1338034619346718722

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 Bitcoin

Just 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.

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.

Share:

Related Articles

Bitcoin ETFs Saw $220M in Inflows Despite BlackRock’s Selloff, Trump’s Tariff War

By April 3rd, 2025

US-based spot Bitcoin exchange-traded funds recorded an impressive surge in inflows while the leading product saw $116 million in outflows amid the United States tariff war.

GameStop’s $1.5B Bet on Bitcoin Pushes GME Stock Price

By April 2nd, 2025

GameStop’s latest fundraising brought its stock to the green zone as the video game retailer wants Bitcoin exposure.

Bitcoin Price Reclaims $84,000, Here Are Key Levels to Watch

By April 1st, 2025

Bitcoin price rebounds above $84K as selling slows. Traders eye $86K resistance and $78K support for the next move.

Exit mobile version