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The upsurge in Bitcoin adoption by institutions to keep demand high for years – JPMorgan

  • Institutions are likely to continue buying Bitcoin in the coming years, as adoption becomes mainstream.
  • Bitcoin is holding above $19,000 after another rejection from $19,500.

Institutions worldwide have been increasing their uptake of Bitcoin, suggesting that adoption is currently on the express lane. According to JPMorgan Chase & Co, this demand could keep rising in the coming years.

Massachusetts Mutual Life Insurance Company purchases $100 million of BTC.

JP Morgan narrowed down on Bitcoin's growing demand after the Massachusetts Mutual Life Insurance Co. bought Bitcoin worth $100 million. The institutions buying Bitcoin have expanded from family offices and high net worth individuals to insurance firms and pension funds. According to Strategists at JPMorgan:

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.

Bitcoin price seeking support above $19,000

The weekend session saw a significant recovery from the dip to $17,600. Demand is likely to have increased following the 11.5% fall from the yearly high. Bitcoin stepped towards $19,500 but hit a wall at $19,438.

A reversal is underway at the time of writing, with Bitcoin trading at $19,084. Support above $19,000 is crucial to sustaining the uptrend eyeing new yearly highs above $20,000.

BTC/USD 4-hour chart

BTC/USD 4-hour chart

Meanwhile, the Relative Strength Index suggests that Bitcoin's short term outlook will remain bearish. A death cross is likely to form when the 100 Simple Moving Average crosses above the 50 SMA. Moreover, closing the day above $19,000 may call for more sell orders, hence the possibility of breakdown to $18,000 and $17,600, respectively.

Author

John Isige

John Isige

FXStreet

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren

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