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Bitcoin Drops Below $63,000 — Is BTC on Sale as Japanese Government Pension Fund Requests Information About It for New Investments?
Bitcoin has had a phenomenal start to 2024, recording new all-time highs and exceeding the expectations of investors around the world.
But the price rally has slowed down significantly, and Bitcoin has fallen more than 10% in the past week, falling below the $63,000 level. What does this mean for the future of Bitcoin? Let’s take a look.
For starters, many analysts believe that Bitcoin was about to experience a slight reversal. For example, Anthony Scaramucci, founder of SkyBridge Capital, said that the last time Bitcoin hit all-time highs in 2021, “You’ve had a Bitcoin correct 10% or more 13 times… from $3,800 to $69,000“This could be a slight pullback before Bitcoin hits new highs again.
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Additionally, Robert Kiyosaki, author of “Rich Dad, Poor Dad,” said“All stock market crashes are crashes, asset crashes, and ‘selling’ is my favorite four-letter word.” While this drop in Bitcoin’s price isn’t necessarily a crash, it could be considered a simple “selling” of Bitcoin.
Bitcoin has seen tremendous growth in 2024, mainly due to the approval of cash exchange-traded funds (ETFs) and the upcoming Bitcoin halving. ETFs have attracted tens of billions of dollars in inflows, and the Bitcoin halving is expected to reduce the volume of sales in the market.
Another problem is that Japan’s Government Pension Investment Fund (GPIF) requested information about Bitcoin to possibly 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, it requested a closer look at a handful of “illiquid assets,” such as Bitcoin, farmland, and gold. It will likely take some time to review the information before deciding whether to invest in these assets. The request for information is due April 19.
GPIF focuses on investments in domestic and foreign debt and equity, as well as real estate and private equity.
GPIF is not the first pension fund to take an interest in the viability of Bitcoin. The Houston Firefighters Relief and Retirement Fund (HFRRF) has invested directly in Bitcoin, and the South Korea National Pension Service has a stake in Coinbase stock.
If GPIF invests in Bitcoin, it could mark a significant shift in the institutional view of Bitcoin from an investment perspective. It will be interesting to see what GPIF finds in its preliminary research later this spring and whether it translates into an investment in the digital currency.
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This item Bitcoin Drops Below $63,000 — Is BTC on Sale as Japanese Government Pension Fund Requests Information About It for New Investments? originally appeared on Benzinga.com
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