Bank of America: It takes $93 million to move Bitcoin's price by 1%.

[ConnerDalfino]

Everything I can read from the Bank of America research note quoted in Inside Bitcoins press release is Positive NEWS:

“According to the analysis, a minimum of $2 billion in inflows would be needed in order to move the Gold market with a single percentile (…) For Bitcoin, however, the researchers speculate that as little as $93 million of a net inflow could be all it takes to push Bitcoin up by 1%.”

According to the same press release, the $2 billion required to shift the gold market with a single percentile varies by about one order of magnitude from the $0,1 billion required for the same impact on the Bitcoin market; the same one order of magnitude that divides the cap market sizes of both Bitcoin and gold.


As a consequence, if (when) the Bitcoin market cap exceeds that of gold, the exposure to cash inflows will be the same for both, equating the efficiency of both as a store of value.
But, given that Bitcoin took 12 years to hit 10% of gold's market cap in 5000 years, all I see is a bright near future: Bitcoin is on the right and fast track to being a "great" store of value... if it hasn't already.

[shahzadafzal]

As a consequence, if (when) the Bitcoin market cap exceeds that of gold, the exposure to cash inflows will be the same for both, equating the efficiency of both as a store of value.
But, given that Bitcoin took 12 years to hit 10% of gold's market cap in 5000 years, all I see is a bright near future: Bitcoin is on the right and fast track to being a "great" store of value... if it hasn't already.

Yes sooner or later Bitcoin will exceed the market cap. of gold but here the fun part begins... Gold supply is not limited it is estimated  2,500-3,000 tonnes annually however, bitcoin is limited to 21 millions bitcoins only.

[mazdafunsun]

So I see that something is little of here. You gave us here a statistic which surely cant be correct all the time , it is not absolute.

The problem is that you told us that 93mil will move market for certain percentage but at what price point? Imagine if we would fell in bear market and go down to for example 10'000 USD per BTC, in this case it would take much less to move the price . So the naked statistic without any explanation means little.

[Poker Player]

I don't know where you got that from or if you did it yourself but that wasn't accurate months ago and it seems not to be accurate today either.

According to: https://companiesmarketcap.com/assets-by-market-cap/ gold market cap is $11T, we haven't surpassed Apple ($2T) and Amazon ($1,5T), etc.

[AmoreJaz]

So I see that something is little of here. You gave us here a statistic which surely cant be correct all the time , it is not absolute.

The problem is that you told us that 93mil will move market for certain percentage but at what price point? Imagine if we would fell in bear market and go down to for example 10'000 USD per BTC, in this case it would take much less to move the price . So the naked statistic without any explanation means little.

the numbers here are very subjective as it depends on what price are we talking about. but one thing that it demonstrates  - a company who owned big amount of bitcoin like MicroStrategy, who currently owned about $4.4B worth of BTC as of March 2 this year can make a dent in the market if they decide to influence it. however, i dont think it will be smart move from their end or will it be really on their favour?

[Tytanowy Janusz]

The problem is that you told us that 93mil will move market for certain percentage but at what price point?

now. During the time when it was being calculated. And this does not depend directly on the price but on the liquidity in the markets which depends much more on volatility, volume, safety of asset (it all atrack market makers).

[milesfull]

In my opinion, whales have much more to send btc to the moon right now

[kaya11]

[quote author=ConnerDalfino link=topic=5325217.msg56608735#msg5
Just imagining the amount of money of moving the price for 10 percent in just less than a day makes me wonder who the hell are those people. Sometimes I think it's just unfair, wish I have known BTC 10 years ago.
If all the billionaire's out there  put 100 million dollars each one of them, then they could really move the market in an instant. Recently I have seen a blog that most of the trades are done by common people and not by millionaires, and couldn't imagine just hoe many of them, and also I don't know for sure if it's true.

[masterzino]

I found BofA for wrong.

$93mn definitely could bend the orderbooks on one or two exchanges. But Bitcoin is a too complex market with spot, margin, futures, etc. To 'move' the price, you will have to split those $93mn in all exchanges overall trading instruments, and then I'm sure that this will dilute the money into the mass without changing the price.

This is possible on smaller coins, traded on fewer exchanges.

[Fesatmas]

If I'm not mistaken this is a critique of Bank of America dealing with its clients in a circular manner. Now, they think the price of bitcoin is easy to manipulate. In addition, the Bank of America is determined to try to reduce the problem of energy consumption, which is costly, but we are very uncomfortable with what the Bank of America is saying. Since this is not the first time that has been hype around manipulating prices, bitcoin is increasing because it is decentralized by increasing buyer demand. thus resulting in significant adoption.

[GreatArkansas]

If I'm not mistaken this is a critique of Bank of America dealing with its clients in a circular manner. Now, they think the price of bitcoin is easy to manipulate.
(....)

I don't think they want to say about manipulation, it can be more close to volatility for me. Since we all know since the beginning, Bitcoin is the most volatile asset, we already experience a huge dump from all-time-highs and parabolic run for Bitcoin, which we can consider Bitcoin got huge volatility.
Which that phrase they will use against Bitcoin to their clients or other people, like they will lose their money on Bitcoin because of volatility, etc.

[Dhoe]

I think United State most against country for stopping bitcoin as worth payment digital currency and they not agree with bitcoin become legal currency payment transaction, this real news with bank of america want to make good news for bitcoin. You need to give us source link information to know is true or not because United State is most hate bitcoin right now.

[leea-1334]

Yes sooner or later Bitcoin will exceed the market cap. of gold but here the fun part begins... Gold supply is not limited it is estimated  2,500-3,000 tonnes annually however, bitcoin is limited to 21 millions bitcoins only.

Probably later than sooner though, because gold is really really slowing down now and since last year banks were buying back all the gold from customers. I read that even in Germany banks were forcing customers to sell back gold and silver to the banks,,, so I think we will see price there grow as much as Bitcoin. For the next 10/20 years.

[Mugtaiya]

Isnt bank of america an operating arm of visa.
they are both american corporations and with visa looking towards having merchants accepting bitcoin for their payments.. it does seem all a little convenient for bank of america to be concerning itself about bitcoin all the sudden.

[LordShanken]

Bitcoin right now is 60k while in Dec 2018 it was 3k. So in both cases it was 93 million to move bitcoin by 1%? I don't think in both cases it will be 93 million. These calculations are tricky and cant be easily predicted.

[jossiel]

In my opinion, whales have much more to send btc to the moon right now

Whales classified as the newer folks in the form of the institutions. With all the news coming out about purchase of bitcoin, they're buying it with hundreds of millions and with the consolidation from one institutional company to the other one, that makes them easy to move the market bullishly.

But having exact numbers about how much it should take for the market to be moved, data are changing and accuracy of those has to be verified first.

[TravelMug]

As a consequence, if (when) the Bitcoin market cap exceeds that of gold, the exposure to cash inflows will be the same for both, equating the efficiency of both as a store of value.
But, given that Bitcoin took 12 years to hit 10% of gold's market cap in 5000 years, all I see is a bright near future: Bitcoin is on the right and fast track to being a "great" store of value... if it hasn't already.

I think that number is too small to move bitcoin's price, this is an open market traded 24x7x365. So meaning there are a lot of traders at any given time and that $93 million won't put a dent on the price.

But I do agree that bitcoin has a bright future, in about 10 years of it's existence, it has shape the landscape of the financial industry. Now we have institutions and big banks and huge companies entering the future. so bitcoin becoming one of the best assets and store of value.

[buwaytress]

Cool so to get us 90% more would only take 9 billion dollars (rough). So maybe a few big corporations topped up with retail fomo after that? Or say, a whole Biden term's worth of stimulus for people and for companies, and Europe stimulus to follow suit so businesses can do the Microstrategy?

Suppose it's all plausible. But when did we follow math from Bank of America again?