One of the largest pension funds in the world has lost over $160 million during the last three months. This amount is almost as much as Bitcoin’s entire market capitalization at this point in time. This is among the worst performances of the pension fund since the 2008 financial crisis that hit investment funds hard and contributed towards a global credit crunch. This could be a sign of a pending economic recession, the last of which was seen back in 2008.
The Government Pension Investment Fund (GPIF) from Japan is the world’s largest pension fund and decreased 11% in overall value and is now valued at 150.63 trillion yen or $1.4 trillion. The fund is managed by an independent entity and millions of Japanese workers contribute to it to get a sizeable paycheck later on. Pension funds are expected to be hurt massively by the coronavirus pandemic that is still raging on around the world. However, Bitcoin itself almost fell 11% during the same time frame but has recovered considerably now while many other investments have been sluggish overall.
However, this is not a cause for celebration among the crypto community because GPIF invested around 0.1% of its entire worth on Bitcoin and bought almost $1.5 billion worth of it. Since the Japanese society is quite progressive when it comes to cryptocurrencies, this investment is likely to be one of the few remaining positives of the entire fund because of massive losses. However, big venture capitals and funds around the world are much less likely to invest in the cryptocurrency and may be missing out on it.
Institutional investing in Bitcoin as an asset for the future can be seen around the world but is likely to be handled in a subtle manner behind the wraps. There are over 1700 Bitcoin whales (large holders) around the world and this number is increasing and reaching the 2017-18 levels when Bitcoin reached an impressive all-time high of $20,000 in January 2018.
With whales quietly buying and then storing the cryptocurrency, it is expected that the free market nature of the cryptocurrency’s trading will eventually force a strong bull run in the near future. The entire crypto market is united in this belief that a future uptick in price index is expected. However, the predictions about when it will happen is where many diverge. Some believe that fall 2020 will see this expected bull run. However, others believe that this time, it will take some time and may be expected in 2021.
Image source: pixabay.com
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