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Insurance means Bitcoin to Morgan Stanley share in MicroStrategy

Insurance means Bitcoin to Morgan Stanley share in MicroStrategy

1) Bitcoin is insurance for unpredictable times –  CEO of Social Capital.

Chamath Palihapitiya, founder and CEO of Social Capital sees Bitcoin as a hedge against global uncertainty. Chamath Palihapitiya in an Interview with CNBC said

The reason is because, everytime you see all of this stuff happening, it just reminds you that wow our leaders are not as trustworthy and reliable as they used to be. So just in case, we really do need to have some kind of, you know, insurance we can keep under our pillow that gives us some access to an uncorrelated hedge.

2)  Morgan Stanley had acquired 792,627 shares in MicroStrategy.

Morgan Stanley, an investment bank has purchased 792,627 shares in MicroStrategy, a business intelligence firm. MicroStrategy’s investments in Bitcoin has been beneficial as the firm’s shares skyrocketing. When MicroStrategy started to move towards Bitcoin, CEO Michael Saylor had said at that time

This is not a speculation, nor a hedge. It is a deliberate corporate strategy to adopt the Bitcoin Standard.

3)  Nathaniel Whittemore on methods of spotting a macro bull market top for the digital currency.

Nathaniel Whittemore, Podcaster shared his view on the methods of spotting a macro bull market top for the digital currency. He said

There isn’t really a macro top, in the sense that the conditions align so well with the narrative. If we see another big round of aggressive fiscal action under the Dems, and after a few months velocity of money is still low and inflation is constrained, you could see a shift back among certain money managers and institutions to the idea that inflation just isn’t something to be worried about, which could hurt some of the animating thesis.

4) Komodo executive on Institutional Bitcoin adoption.

Jason Brown, director of business development for smart chain platform Komodo expressed his views on Bitcoin’s recent rally and institutional adoption. He said

We couldn’t have predicted that COVID would have caused such an abrupt crash and short-term bear market followed by the subsequent bull run that started in the summer of 2020. Institutions clearly have a long-term HODL mindset and aren’t speculating. The potential challenge is what happens if the institutions themselves go under, even if it’s related to factors outside of the current crypto market. his means we could see a scenario in which an institution is in a financial crunch if crypto prices are declining or stagnant, and thus they decide to sell below market averages. Although highly theoretical and unlikely, this could cause a cascade effect in the opposite direction and send us back to a bear market. We used to talk about how whales (high net worth individuals) move the market, but now the total supply of top cryptocurrencies is even more centralized. In the future, all it might take is one really large sell-off from one major institution to have a noticeable impact on the market — even more so than the bear market that began in 2018.

5)  Pension funds investing in the Grayscale family of funds. 

Michael Sonnenshein,  CEO of Grayscale disclosed to Bloomberg that Pension funds are investing in the Grayscale family of funds. He said

We’ve started to see participation not just from the hedge fund segment, which we’ve long seen participation from, but now it’s recently from other institutions, pensions and endowments. […] The sizes of allocations they are making are growing rapidly as well.


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