A Bank of America study claims it would cost just 93 million USD for Bitcoins price to move by one percent

By: Mark Jessy

March 20, 2021 3:50 PM

Recent research by the Bank of America analyst claims that cash injection of $93 million into bitcoin is enough to move the price by 1%.

Bank of America strategist Francisco Blanch, in a recent research note, slammed Bitcoin's volatile nature claiming it's environmental disastrous by producing so much CO2 in the mining process. 

The infamous research note from Bank of America also contains reports that the top-ranked crypto assets only need a fresh cash injection of $93 million to move the price by one percent.

The research note authored by Francisco Blanch, with contributions from Philip Middleton and Savita Subramanian reads:
"Bitcoin is remarkably sensitive to high demand for the dollar."

The report also shows that it would need a minimum of $2 billion worth of cash inflows to move the gold price by 1% and over $2.5 billion to impact the price of the 20-year-plus treasury in the same manner which is over twenty times what's needed to move bitcoin by in the same way.

Bitcoin market cap is slightly above $1 trillion which is equivalent to 10% of golds, and the research suggests that despite bitcoin parabolic rise from late 2020 the crypto asset is twice as volatile as gold per dollar inflows despite being in existence for over a decade.

"What has established the huge upside pressure on BTC prices in recent time and, 2020 in particular? The simple fact: reasonable inflow of capital." The report concluded: "we measure a net inflow of $93 million into Bitcoin would result in the price appreciation of 1%."

The researchers indicate the lesser cost needed to push the price of bitcoin and with whales accumulating as institutional interest soared, the number of coins available for purchase on exchanges will shrink. According to the analysis BTC whales with addresses holding large number of bitcoins have not been selling since the start of the pandemic.