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Bitcoin has had an incredible start to 2024, hitting new all-time highs and exceeding the expectations of investors around the world.
But the rally has slowed significantly, with Bitcoin falling more than 10% over the past week and falling below the $63,000 level. What does this mean for Bitcoin going forward? Take a look.
First of all, many analysts believe that Bitcoin should reverse slightly. For example, Anthony Scaramucci, founder of Skybridge Capital, said when Bitcoin hit a new all-time high in 2021, “Bitcoin has corrected more than 10% 13 times…from $3,800 to $60,000. It was up to $9,000.” This could be a case of a slight pullback before Bitcoin reaches new highs again.
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Furthermore, Robert Kiyosaki, author of “Rich Dad, Poor Dad” Said“Market crashes are all about whether an asset holds up or not, and ‘sell’ is my favorite four-letter word.” This fall in Bitcoin prices may not necessarily be a crash, but Bitcoin can also be considered simply “on sale”.
Bitcoin experienced significant growth in 2024, primarily due to the approval of spot exchange-traded funds (ETFs) and the upcoming Bitcoin halving. ETFs have seen tens of billions of dollars in inflows, and Bitcoin’s halving is expected to reduce the amount of selling activity in the market.
Another problem is that Japan’s Government Pension Investment Fund (GPIF) has requested information about Bitcoin, as it may include it in future investment portfolios.
With nearly $1.5 trillion in assets as of fall 2023, GPIF is the world’s largest pension fund. On March 19, the company called for a closer look at a small number of “illiquid assets” including Bitcoin, farmland, and gold. You may take some time to review the information before deciding whether to invest in these assets. The deadline for submitting information is April 19th.
GPIF focuses on investing in domestic and international debt and equity, real estate and private equity.
GPIF is not the first pension fund to consider the viability of Bitcoin. The Houston Firefighters Relief and Retirement Fund (HFRRF) has invested directly in Bitcoin, and the Korean National Pension Service has a stake in Coinbase stock.
If GPIF invests in Bitcoin, it could significantly change the institutional view of Bitcoin from an investment perspective. It will be interesting to see what GPIF discovers in its preliminary research later this spring and whether it translates into investing in digital currencies.
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This article Bitcoin drops below $63,000 — Will Bitcoin go on sale as Japan’s pension provident fund seeks information about Bitcoin for new investments?originally appeared on his Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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