Bitcoin: Cryptocurrency jumps to record high reveals expert
Earlier this week, market analysts were stunned when the 170-year-old insurance company Mass Mutual invested $100 million (£76 million) in bitcoin. Billionaire Mike Novogratz remarked that it was the most important news for bitcoin this year. On Thursday Mr Novogratz tweeted: “An insurance company buys bitcoin for its general account.
“This needs fed approval. It’s a HUGE deal”.
Insurance companies are usually conservative with their acquisitions but they are now looking at holding bitcoin as a way to increase their yield on investments.
Speaking to Express.co.uk, bitcoin pioneer Max Keiser said: “Insurance company money is the most conservative and deepest pool of capital in the world.
“Now that Mass Mutual has made it okay for these companies to invest in bitcoin, the floodgates have opened even wider than they did when Paul Tudor Jones and Michael Saylor started putting billions into bitcoin.”
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Mass Mutual also invested $5 million (£3.78 million) in an equity stake in US Digital Investments Group.
Digital Investments Group has said it is “dedicated to bitcoin”.
The price of bitcoin has surged 177 percent this year.
The news from the insurance industry comes as business intelligence group MicroStrategy reinforced its investment in Bitcoin.
This week MicroStrategy said it would raise $400 million to buy even more of the world’s preeminent cryptocurrency.
Speaking to Market Insider Craig Erlam, senior market analyst at OANDA, said bitcoin would, “break into new territory above $20,000”.
The analyst cautioned that although a bullish move above $20,000 “is more likely”, a move below $16,000 would be “a massive test of the bitcoin buzz that saw it hit new highs”.
Referring to the price of bitcoin, he added: “It should be a fascinating end to the year.”
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