In addition, J.P. Morgan strategists led by JPMorgan Chase pointed out in a report last week that the trend of investing in Bitcoin is gradually shifting from household financial institutions and wealthy investors to insurance companies and pension funds, although these insurance companies and pension funds are not Bitcoin is likely over-allocated, but even a small amount of money entering the market could have a significant impact.
Previously, American insurance company Life announced that its investment fund would purchase $100 million in Bitcoin, becoming the latest mainstream company to get involved in cryptocurrency assets.
Analysts said that this move will become a milestone for institutional investors to invest in Bitcoin. “As other insurance companies and pension funds follow suit, we expect underlying demand for Bitcoin to rise in the coming years.”
Analysts predict that if pension funds and insurance companies in the United States, Eurozone, United Kingdom and Japan allocate 1% of their assets to Bitcoin, demand for Bitcoin will increase by $600 billion.
This month, Dalio, founder of Bridgewater Associates, the world's largest hedge fund, said that over the past decade, Bitcoin and other digital currencies have become asset substitutes similar to gold. Bitcoin has both similarities and differences with a liquid store of wealth that is limited in supply, such as gold, and therefore can serve as a diversification investment against gold.
However, industry insiders have been reminding that no matter what direction the Bitcoin price chooses in the future, it is best for individuals not to participate in futures trading of encrypted digital currencies without the participation of large institutions.
The stock prices of U.S. blockchain stocks rose sharply today, with Canaan Technology rising 6.74%, up 16.41%, and Riot rising 5.70%.
The Federal Reserve staged a year-end "finale"
At 3 a.m. on December 17, Beijing time, the Federal Reserve announced its last interest rate decision in 2020.
According to Xinhua News Agency, the Federal Reserve announced that it would maintain the target range for the federal funds rate between zero and 0.25%, in line with market expectations.
Although the Fed did not directly adjust the scale of QE bond purchases today, it strengthened its goal of maintaining bond purchases. The statement said it would continue to purchase at least $120 billion in bonds every month until "substantial progress is made toward achieving maximum employment and price stability goals," which was previously stated to be "in the coming months."
Federal Reserve Chairman Jerome Powell said at a press conference after the interest rate resolution that the Fed would not give precise indicators of "substantial progress" and would issue a warning before scaling back its bond purchases. Powell also reiterated that the Fed may expand bond purchases.
It is worth noting that Powell also commented on the current market, arguing that current stock prices are not necessarily high given the current low interest rates.
At the same time, the Federal Reserve raised its economic growth forecast for the past three years and extended the temporary support period of the U.S. dollar liquidity facility launched during the epidemic by six months. The median forecast by Fed officials is that U.S. GDP will fall by 2.4% in 2020, compared with the 3.7% decline last announced in September; the expected growth rate in 2021 is raised from 4.0% to 4.2%, and the growth rate in 2022 is expected to be raised from 3.0% It was revised up to 3.2%; the expected growth rate in 2023 dropped from 2.5% to 2.4%, and the long-term growth rate after 2023 was expected to drop from 1.9% to 1.8%.
After the meeting, the Fed also announced that it would extend the validity period of FIMA Repo, the U.S. dollar liquidity swap and repurchase agreement mechanism for overseas central banks, until September next year. These are temporary tools launched by the Federal Reserve in March this year after the outbreak. The Fed had previously extended the deadline to March next year.
In today's session, U.S. stocks went up and down, which shows that investors' sentiments are very high. After the Fed's decision was announced, the three major U.S. stock indexes rose briefly and then fell back.
The Dow Jones Industrial Average closed down 0.15%. The Nasdaq rose 0.5% to hit a new closing high. The S&P 500 rose 0.18%.
U.S. large-cap technology stocks were mixed, with Apple down 0.05%, Amazon up 2.4%, up 0.97%, Google down 0.22%, up 0.04%, and Microsoft up 2.41%.
Anti-epidemic concept stocks fell across the board, down 6.92%, Gilead Sciences fell 0.82%, Novavax Pharmaceuticals fell 4.23%, fell 4.87%, and Pfizer fell 2.22%.
(This article does not constitute investment advice and is at your own risk.)
Editor|Lu Xiangyong Wang Jiaqi
Proofreading|He Xiaotao
Daily Economic News Comprehensive Financial News Agency, Wind, etc.
标签： #Bits #Expectations #Interest Rates #Pensions #Resolutions
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