Bank of America

Bank of America Says $93 Million Required to Raise BTC Price by 1%

The adoption of Bitcoin keeps snowballing as institutional interest in the primary cryptocurrency keeps growing. This has driven the price of Bitcoin by about ten-fold in the last one year. A recent report from the Bank of America (BOA) claims that it takes an inflow of $93 million into Bitcoin to boost the price by 1%.

It Takes $93 Million to Raise BTC Price by a Percentile – Bank of America

Over time the demand for Bitcoin has heightened which has made it very volatile. The recent report projected that it takes about $93 million to cause a 1% increase in Bitcoin’s price. In contrast, it would require about $2 billion to move gold’s price by 1% and $2.25 billion to achieve a similar result on 20+ year treasury bonds.

The “modest capital inflows” is what has kept Bitcoin prices exceptionally high. With Bitcoin’s market cap sitting at 10% of gold’s, the volatility of BTC per-dollar inflows is twice that of gold, says Bank of America. However, considering that Bitcoin has only been for a few years, Bitcoin’s performance is outstanding.

Bank of America Says Bitcoin is too Volatile

According to Charlie Bilello, Compound Capital Advisor CEO, Bitcoin is the best performing asset in a decade with an average annualized yield of 230.6%. Contrasting this to gold’s average annualized yield of 1.5%, it’s safe to say that Bitcoin has had an impressive performance in just a few years.

The Bank of America claims that Bitcoin is too volatile and because of that it cannot be relied on as a store of value. However, it appears that other banks do not share a similar sentiment with BOA. Other traditional banks like JPMorgan have scaled up by giving their clients a taste of the flagship cryptocurrency.

Also, the Deutsche Bank reported that Bitcoin has become “too important to ignore.” About 30% of millennials across the U.S, China, Germany, and other countries believe that cryptocurrencies will replace fiat currencies. Therefore, it seems Bitcoin has come to stay and is not going away anytime soon.

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