More and more large banks no longer see Bitcoin as a temporary phenomenon. This week alone there were positive signals from Deutsche Bank and Morgan Stanley. Welcome to the opinion ECHO.
The fact that Morgan Stanley, one of the largest banks ever dared to step into the Bitcoin market, was nothing less than a bang . It was yet another sign of legitimacy for the once dodgy crypto market. Morgan Stanley has about $ 4 trillion in capital under management, so the potential inflow of liquidity into the Bitcoin market is huge. The message was celebrated extensively on Twitter. Eric Weiss, for example, CEO of the Bitcoin Investment Group, sees the announcement as the dawn of a new era.
Morgan Stanley’s announcement to offer bitcoin to their clients ($5T) in April ushers in a new era. A tidal wave of money is about to flow into bitcoin. Every major bank will follow. Nothing will ever be the same. #Bitcoin
— Eric Weiss (@Eric_BIGfund) March 18, 2021
The announcement isn’t quite as memorable after all. After all, Morgan Stanley only includes wealthy customers who have capital over $ 2 million in an account with the bank. In addition, the Morgan Stanley brokers do not invest in physical Bitcoin, but in BTC funds such as the FS NYDIG Select Fund.
A fairytale climb
Now a local bank is also joining the Bitcoin Reality Check. In a recently published research paper by Deutsche Bank, economist Marion Laboure deals with cryptocurrency number 1. It says
Bitcoin’s $ 1 trillion market cap makes it too important to ignore. As long as asset managers and companies keep getting into the market, Bitcoin prices could continue to rise.
Apoorv Gupta, Entrepreneur | CMO at AMEPAY | Caph IQ
The reason for the incredible increase in Bitcoin is the so-called Tinkerbell Effect. A recognized economic phenomenon according to which the legitimacy of an asset increases the more people believe in it. So far, so obvious. Doesn’t value always arise in people’s minds?
In the medium term, however, further price rallies are to be expected, but a high risk tolerance is a prerequisite for the high returns. After all, BTC is still comparatively illiquid and therefore volatile. Whales would therefore still have disproportionate market power and could exert a strong influence on the crypto market – in both directions.
But that could change in the future if crypto disciples flock to the market in droves, according to the author. The first signs of this can already be seen: Young investors have a much greater risk tolerance than older ones, as their understanding and thus their trust in Bitcoin is greater. A survey by Deutsche Bank showed that over 40 percent of those questioned have at most a “rudimentary understanding of cryptocurrencies”. Find more citytelegraph price analysis here.
I bought more BTC at 56,500. Just in case anyone was wondering if I’m still bullish.
— Mike Novogratz (@novogratz) March 16, 2021
The billionaire and CEO of the Bitcoin fund Galaxy Digital makes it clear: Bitcoin under 60,000 US dollars is cheap!