NAIROBI (Coinchapter.com) – The world’s largest pension fund, Japan’s Government Pension Investment Fund (GPIF), is considering diversifying into alternative assets like Bitcoin. This initiative signals a significant shift in institutional attitude towards cryptocurrencies and could be the catalyst for the 100k Bitcoin rally.
On Tuesday, the GPIF made an official announcement requesting public input on investing in illiquid assets like Bitcoin, gold, and farmland. This request aligns with their five-year research effort to modernize investment strategies in response to changing economic conditions and evolving technologies. Furthermore, this move reflects a growing trend among institutions to consider Bitcoin as a potential hedge against inflation and market instability. This development could increase Bitcoin adoption and drive up its price.
Following the announcement, Bitcoin’s price experienced a surge, breaking past the $68,000 mark despite a previous dip below $65,000. This response from the market underscores the impact of GPIF’s potential entry into the cryptocurrency space. With a current market capitalization of $1.32 trillion and a 24-hour trading volume of $60.26 billion, Bitcoin’s financial metrics reflect its robust position in the market. The potential involvement of GPIF, given its massive asset management portfolio, could inject unprecedented liquidity and stability into Bitcoin, thereby catalyzing its price toward the $100,000 milestone.
Why GPIF’s Interest Could Send BTC to $100K
The potential interest of the Government Pension Investment Fund (GPIF) in Bitcoin carries significant weight due to the sheer size of assets under its management. As of the third quarter of 2023, GPIF managed a staggering 224.7 trillion yen, equivalent to approximately $1.5 trillion, making it the largest pension fund in the world.
Bitcoin’s limited and diminishing supply is a crucial factor that could propel its price to 100K soon. Bitcoin’s total supply is capped at 21 million coins. With 19.6 million already in circulation (as of March 2024), this limited supply creates scarcity. When scarcity meets growing demand, it can drive up the price of Bitcoin.
Above all, if GPIF were to allocate even a small percentage of its colossal portfolio to Bitcoin, it could trigger a supply shock. For instance, if GPIF allocated 1% of its $1.5 trillion portfolio to Bitcoin, it would translate into a $15 billion investment. This substantial influx of capital into a market with a limited supply could potentially drive the price of Bitcoin towards the $100,000 mark, especially if other institutional players follow suit, further amplifying the demand.
