Bitcoin price rebates as Morgan Stanley is considering buying BTC


According to reports, Morgan Stanley, one of the largest investment banks in the US, is reportedly considering investing in bitcoin (BTC).

Bloomberg reported that Morgan Stanley’s $ 150 billion investment arm, called Counterpoint Global, could place bitcoin on its “list of potential bets”.

BTC / USDT 1-Hour Price Chart (Binance). Source: TradingView.com

Bitcoin’s recovery started after news

Hours before the news was released, the price of bitcoin plummeted nearly 4% from $ 48,000 and as low as Binance to $ 46,252.

As the news broke, the price of bitcoin rose almost 3% from $ 46,300 to $ 47,300.

Morgan Stanley’s Counterpoint Global considers bitcoin as an investment, notable for two main reasons.

First, Morgan Stanley is a top financial institution in the US, and has considerable influence in the banking sector. Second, it comes as the bank increased its holding in MicroStrategy, which to date has accumulated over one billion dollars in bitcoin.

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

The firm will still require approval from concerned parties and regulators. For example, even if the investment arm of the bank decides to invest in bitcoin, it may still take some time to materialize.

The news comes exactly one month after Morgan Stanley increased its stake in MicroStatery to approximately 650,000 shares, which equates to more than 10% of the firm.

MicroStrategy, a publicly listed business intelligence firm in the US, has shaken the cryptocurrency market after aggressively accumulating BTC as its treasury asset. Its share price has also seen incredible growth in the last few months, which has also outpaced BTC.

MSTR vs. Bitcoin vs. NASDAQ Performance. Source: Twitter / @ Ecoinometrics

Since the late 2020s, MicroStrategy, led by its CEO Michael Saylor, has been continuously investing in bitcoins and leading seminars to help other corporations to follow suit.

On February 4, for example, MicroStrate discussed ways to discuss the “bitcoin corporate strategy” with 1,400 companies and how to get in touch with BTC as a corporation.

Public perception of bitcoin is improving

The combination of large institutional capital flows in the bitcoin market and vocal support for cryptocurrencies from financial institutions is improving the public perception of bitcoin.

As a result, banks and public corporations are being pressured to either clarify why they are not investing in BTC or not on board.

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

“If an asset class develops over time that is being used by various asset managers and investors, we have to get involved. The demand is not there yet, but I’m sure it will happen at some point.”

Generally, more financial institutions have started supporting the bitcoin and cryptocurrency sector, which benefits the overall infrastructure of the market.

As Cointelegraph pointed out, BNY Mellon also plans to capture bitcoin in the future.