Bitcoin Dropped Below $63K — Is BTC Going On Sale As Japan's Government Pension Fund Asks For Information On 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 run has slowed significantly, and Bitcoin is down over 10% in the past week, dipping below the $63,000 level. What does this mean for Bitcoin going forward? Take a look.

For starters, many analysts believe that Bitcoin was due for a slight reversal. For example, Anthony Scaramucci, founder of SkyBridge Capital, said the last time Bitcoin hit all-time highs in 2021, “You had Bitcoin correct 10% or more 13 times … from $3,800 to $69,000.” This could be a case of a slight pullback before Bitcoin reaches new highs again.

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Additionally, Robert Kiyosaki, author of “Rich Dad Poor Dad,” said, “All market crashes are, are assets going on and ‘sale’ is my favorite four-letter word.” While this drop in the price of Bitcoin may not necessarily be a crash, it could be viewed as Bitcoin simply “going on sale.”

Bitcoin has seen huge growth in 2024, primarily because of the approval of spot exchange-traded funds (ETFs) and the upcoming Bitcoin halving. The ETFs have attracted tens of billions in inflows, and the Bitcoin halving is projected to reduce the amount of selling activity in the market.

Another wrinkle is that the Government Pension Investment Fund (GPIF) of Japan requested information on Bitcoin to potentially include it in future investment portfolios.

With nearly $1.5 trillion in assets as of fall 2023, GPIF is the largest pension fund in the world. On March 19, it asked to take a closer look at a handful of “illiquidity assets,” such as Bitcoin, farmland and gold. It likely will take some time to review the information before deciding whether to invest in these assets. The submission for information is due on April 19.

GPIF focuses on investments in both domestic and foreign debt and equities as well as real estate and private equity.

GPIF is not the first pension fund to take a look at the viability of Bitcoin. The Houston Firefighters Relief and Retirement Fund (HFRRF) has invested in Bitcoin directly, and the South Korean National Pension Service has a stake in Coinbase stock.

If GPIF invests in Bitcoin, it could mark a significant change 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 turns into an investment in digital currency.

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This article Bitcoin Dropped Below $63K — Is BTC Going On Sale As Japan’s Government Pension Fund Asks For Information On It For New Investments? originally appeared on Benzinga.com