Commodity News

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, soft commodities, and Bitcoin


Bitcoin Rebounds As Morgan Stanley Considers $150 Billion BTC Investment

February 13, 2021 at 21:28 by Mark Stevenson

It has been reported that Morgan Stanley, one of the largest investment banks in the United States, is exploring a $150 billion Bitcoin (BTC) buy.

According to a report by Bloomberg, the investment arm in Morgan Stanley called Counterpoint Global could put Bitcoin on a “potential betting list.”

Bitcoin recovers as Morgan Stanley consider BTC investment

Hours before the news broke, Bitcoin’s price was down roughly 4%, from $48,000 to $4,6252 on Bitstamp. However, Bitcoin price started recovering when the news broke, rising from around $46,300 to over $47,300, an increase of roughly 3%.

BTC/USD Chart Source: TradingView

Counterpoint Global by Morgan Stanley regards Bitcoin as a noteworthy investment for two major reasons.

First, Morgan Stanley is a leading financial institution based in the United States, and it has a huge influence on the banking sector. Second, the bank currently has a nearly 11% stake in MicroStrategy, which has raised more than $1 billion in Bitcoin.

According to the Bloomberg report, Counterpoint Global is “exploring whether cryptocurrency would be a suitable choice for its investors, according to people familiar with the matter.”

The company will still need the approval of the relevant parties and regulatory authorities. That being the case, even if the investment arm of the bank decides to place a bet on Bitcoin, it may take some time to materialize.

As a reminder, one month ago, Morgan Stanley’s stake in MicroStrategy was increased to about 650,000 shares, which is more than 10% of the company.

MicroStrategy, a publicly-listed business intelligence firm based in Tysons Corner, Va, USA, shook the crypto market after its strong accumulation of Bitcoin as its treasury asset. Over the past few months, its share price has also seen incredible growth that has outperformed Bitcoin.

MSTR vs. Bitcoin vs. Nasdaq performance. Source: Twitter / @ Ecoinometrics

Bitcoin institutional adoption is towering

The combination of large institutional capital flows to the Bitcoin market and voice support of digital currencies from financial institutions improves public perception of Bitcoin. As a result, banks and public companies are being pressured to either explain why they should not invest in Bitcoin.

In an interview with CNBC, Daniel Pinto, JP Morgan Co-President said the bank could support Bitcoin trading if it saw sufficient demand.

Overall, more financial institutions are starting to adopt the use of Bitcoin and other cryptocurrencies, thus benefiting the overall market infrastructure.

If you have any questions and comments on Bitcoin today, use the form below to reply

Leave a Reply