Bitcoin price rebounds as Morgan Stanley reportedly considering buying BTC

Published at: Feb. 13, 2021

Morgan Stanley, one of the biggest investment banks in the U.S., is reportedly considering investing in Bitcoin (BTC), according to reports.

Bloomberg reported that Morgan Stanley’s $150 billion investing arm called Counterpoint Global could place Bitcoin to “its list of possible bets.”

Bitcoin begins recovery after the news

Hours before the news was released, the price of Bitcoin dropped by nearly 4% from $48,000 to as low as $46,252 on Binance.

The price of Bitcoin began to recover when the news broke, rising from around $46,300 to above $47,300, by nearly 3%.

Morgan Stanley’s Counterpoint Global considering Bitcoin as an investment is noteworthy because of two main reasons.

First, Morgan Stanley is a top financial institution in the U.S., and its influence in the banking sector is immense. Second, it comes after the bank boosted its holdings in MicroStrategy, which has accumulated over a billion dollars in Bitcoin to date.

Bloomberg reported that Counterpoint Global is “is exploring whether the cryptocurrency would be a suitable option for its investors, according to people with knowledge of the matter.”

The firm would still need approval from relevant parties and regulators. As such, even if the bank’s investment arm decides to invest in Bitcoin, it could still take a while for it to materialize.

The news comes just a month after Morgan Stanley increased its stake in MicroStrategy to nearly 650,000 shares, equivalent to over 10% of the firm.

MicroStrategy, a publicly-listed business intelligence firm in the U.S., has moved the cryptocurrency market by storm after its aggressive accumulation of BTC as its treasury asset. Its stock price has also seen incredible growth over the past few months, which has even outperformed BTC. 

Since late 2020, MicroStrategy, led by its CEO Michael Saylor, have been continuously investing in Bitcoin and leading seminars to assist other corporations to follow suit.

On Feb. 4, for example, MicroStrategy conducted a seminar with 1,400 companies to discuss the “Bitcoin Corporate Strategy” and ways to gain exposure to BTC as a corporation.

The public perception of Bitcoin is improving

The combination of large institutional capital inflows into the Bitcoin market and the vocal support for cryptocurrencies from financial institutions is improving the public’s perception of Bitcoin.

As a result, banks and public corporations are facing pressure to either explain why they aren't investing in BTC or get on board.

Speaking to CNBC, JPMorgan co-president and COO Daniel Pinto said that the bank could support Bitcoin trading if it sees sufficient demand. He said:

"If over time an asset class develops that is going to be used by different asset managers and investors, we will have to be involved. The demand isn't there yet, but I'm sure it will be at some point."

Generally, more financial institutions have begun to support Bitcoin and the cryptocurrency sector, which benefits the overall infrastructure of the market.

As Cointelegraph reported, BNY Mellon is also planning to custody Bitcoin in the foreseeable future.

Tags
Bitcoin
Bitcoin Price
Markets
Investments
Jpmorgan Chase
Morgan Stanley
Related Posts
Bitcoin ‘heavy breakout’ fractal suggests BTC price can hit $250K–$350K in 2021
Bitcoin (BTC) has the potential to push its prices to between $250,000 and $350,000 by the end of 2021, a long-standing fractal suggests. First spotted by pseudonymous analyst Bit Harington, the bullish setup drew its inspirations from Bitcoin’s spectacular bull runs every time after halvings, which is when the miner block reward gets cut in half. Analysts perceive the halving as a bullish event, which reduced the supply of newly mined BTC. Harington reminded that Bitcoin’s prices surged by more than 600% after the first two halving events in 2012 and 2016 when measured from a so-called resistance/support (R/S) line, …
Bitcoin / Sept. 19, 2021
Ark Invest and JPMorgan expect Bitcoin to hit $130K–$470K
JPMorgan Chase expects Bitcoin (BTC) to reach $130,000, while Ark Invest anticipates the market valuation of BTC to surpass that of gold. The optimistic macro prediction from both funds revolves around the scarcity of Bitcoin, which has buoyed its popularity as a safe-haven asset. Why are both high-profile funds so optimistic about Bitcoin? As Cointelegraph previously reported, the outlook of the U.S. dollar index is on the decline. The fear of inflation and the increasing liquidity in the financial markets is causing reserve currencies, like the dollar, to depreciate. Ark Invest, as an example, sees Bitcoin nearing $500,000 in the …
Bitcoin / April 5, 2021
Bitcoin 'better than gold' if you study it, fund manager tells mainstream media
Bitcoin (BTC) is superior to gold if investors take the time to study it, says hedge fund manager Anthony Scaramucci. In an interview with CNBC on March 18, Scaramucci, who is CEO of SkyBridge Capital, reinforced his belief in Bitcoin for mainstream audiences. Scaramucci on Bitcoin vs. gold: "The world is changing" With Bitcoin surging in 2021, questions continue to be asked about whether the gains are coming at the expense of gold, which has failed to capitalize on risks associated with global government money printing. Comparing the two assets, Scaramucci left little doubt as to his preference, arguing that …
Bitcoin / March 18, 2021
JPMorgan turns bullish on Bitcoin citing ‘potential long-term upside’
JPMorgan, the $316 billion investment banking giant, said the potential long-term upside for Bitcoin (BTC) is “considerable.” This new optimistic stance towards the dominant cryptocurrency comes after PayPal allowed its users to buy and sell crypto assets. JP Morgan, from "Bitcoin is a fraud and will blow up" in 2017 to "Bitcoin’s competition with gold" in 2020. We've come a long way. pic.twitter.com/xceabkHaVJ — Krüger (@krugermacro) October 24, 2020 The main factor put forward by JPMorgan’s Global Markets Strategy division is Bitcoin’s competition with gold. The note, obtained by Business Insider, reads: "The potential long-term upside for bitcoin is considerable …
Bitcoin / Oct. 24, 2020
Not bad for 2020: Up 42% in Q4, Bitcoin price outperforms top bank stocks
Historically, traditional market analysts and old school investors tend to look at Bitcoin and other cryptocurrencies with a wary eye, and when crypto pundits attempt to make comparisons between the two these investors say it's an apples to oranges argument. Take, for example, Warren Buffett, who many a time has said Bitcoin is nothing more than a Ponzi scheme as it does not produce anything and therefore has no value. According to these traditionalists, comparing Bitcoin to Apple, Tesla, or a bank stock like JPMorgan is irrational as the latter employ workers, produce products, and generate revenues and dividends which …
Adoption / Nov. 5, 2020