US Banks Make Covert Bitcoin Investments; Details Revealed

In a surprising turn of events, major US banks and investment firms have been quietly making record-breaking purchases related to Bitcoin, contradicting their public skepticism toward the cryptocurrency. While the Securities and Exchange Commission (SEC) was focused on regulatory actions against Binance and Coinbase, banks and investment firms like BlackRock and Bank of America seized the opportunity to acquire Bitcoin-related assets. Their notable investments in MicroStrategy, a leading holder of Bitcoin, suggest a significant shift in their perception of digital currency.

The Puzzle Unfolds: Banks’ Bitcoin Purchases Amidst Skepticism

While the SEC’s attention was on scrutinizing cryptocurrency exchanges, major banks and investment firms such as BlackRock, Bank of America, and Fidelity discreetly made substantial purchases related to Bitcoin. The spotlight falls on their investments in MicroStrategy stock, a company renowned for holding a significant amount of Bitcoin. 

MicroStrategy’s impressive Bitcoin reserves, currently valued at over $ 3 billion, making it an appealing investment for those seeking exposure to the digital currency. 

The Role of MicroStrategy Stock: Easiest Route to Bitcoin Exposure

MicroStrategy’s stock holds a special allure for US investors due to the absence of a Bitcoin exchange-traded fund (ETF) in the country. Consequently, purchasing MicroStrategy shares provides a relatively straightforward means of gaining indirect exposure to Bitcoin’s price movements. 

Bank of America, for example, astonishingly increased its exposure to MicroStrategy by 47,800% in the first quarter of 2023, holding 2.3% of the company’s stock. Even more striking, BlackRock possesses a stake three times larger, with a 6% ownership valued at approximately $156 million. Fidelity, another significant player with over $4.5 trillion in assets under management, saw a 28,000% increase in its exposure to MicroStrategy.

Banks’ Actions Speak Volumes: Downplaying Bitcoin vs. Substantial Purchases

The irony lies in the stark contrast between public statements from these banks, dismissing Bitcoin’s credibility and labeling it as a fictional economy, and their actions, which indicate a genuine belief in its value. While public skepticism may create uncertainty among potential investors, the banks’ purchases reveal a different narrative – an underlying interest and confidence in Bitcoin’s long-term potential.

Their investments in MicroStrategy stock and the growing optimism surrounding Bitcoin’s price trajectory reinforce the notion that Bitcoin is no longer a fringe asset but an influential force shaping the future of finance.

Standard Chartered Bank’s Forecast: Adding to the Optimism

Adding to the growing optimism surrounding Bitcoin, Standard Chartered Bank has forecasted that the cryptocurrency will reach $100,000 by 2024. It seems that this prediction further bolsters the belief in Bitcoin’s potential and provides a catalyst for the US bank’s and financial institutions’ interest in the cryptocurrency. Despite the current market conditions, these institutions seem to have a long-term perspective and anticipate future growth.

Analysing Bitcoin’s Current Standing

Taking a closer look at Bitcoin’s current position, it is found that the live price of Bitcoin stands at $25,539.80 per BTC/USD, with a market capitalization of $495.56 billion. In the last 24 hours, Bitcoin has experienced a positive movement of +2.19%. The 24-hour trading volume reached $15.03 billion, reflecting the continued interest and activity in the market. With a circulating supply of 19.40 million BTC, Bitcoin’s significance as a digital asset cannot be ignored.

Analysing BTCUSD’s technical indicators (1 day), it is observed that the Relative Strength Index (RSI) is at 41, indicating a neutral position. The Stochastic %K stands at 24, suggesting a bearish trend, The Commodity Channel Index (CCI) at -106 implies oversold conditions.

Additionally, the Average Directional Index (ADX) registers at 30, reflecting a moderate trend. Despite some mixed signals from technical indicators, Bitcoin’s resilience and market cap demonstrates its strength as a digital asset. 

As the cryptocurrency market continues to evolve, the actions of these banks prompt us to question prevailing narratives and explore the motivations behind public statements.