The increasing institutional interest in Bitcoin price is not hard to see as U.S. regulators green light custody
In a discussion about the rise of Bitcoin, Capriole digital asset manager Charles Edwards predicted that Bitcoin price would surpass $ 20,000 if US banks invested 1% of their assets.
It’s hard to see the Bitcoin price trend unfolding
If US banks put only 1% of their assets in Bitcoin as an investment, hedge, or insurance, the Bitcoin price will more than double.
Based on the chart of the growing asset balances of US banks, we can see that is evidence of the potential impact that a person inclined to Bitcoin will have. Also, Grayscale is currently a significant Bitcoin whale in the market, along with payment company Square, both of which bought most of Bitcoin this year.
If US banks put just 1% of their assets into #Bitcoin as an investment, hedge or insurance…
… the Bitcoin price more than doubles.
Just 1 NASDAQ stock (Grayscale) already owns 2% of circulating Bitcoin supply today.
It’s not hard to see where this is going. pic.twitter.com/i3oqPTcAPl
— Charles Edwards (@caprioleio) July 23, 2020
Edwards’s comment is quite correct. Because, this week, lenders in the US received the green light from regulators to participate in cryptocurrency custody activities. As AZCoin News reported, the Office of the Comptroller of the Currency (OCC) confirmed that it is licensed licenses to all federal banks to manage cryptocurrencies, simultaneously providing cryptocurrency depository services to customers.
U.S. bank asset balances chart | Source: Charles Edwards/ Twitter
Whether a cash flow from this area will ultimately benefit Bitcoin is because an asset remains a controversial topic. In the past, concerns circulated that institutional attention in the form of products like Bitcoin ETFs would be detrimental to price discovery. This is not a good or bad problem, and it is only true.
However, other recent moves only serve to strengthen the upward trajectory of the market. Paul Tudor Jones, a maverick investor, who is becoming increasingly optimistic about Bitcoin, recently revealed that he has put up to 2% of his wealth in BTC.
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