Bitcoin, Ethereum and XRP slide as Bank of America creates its own dedicated crypto research team ⋆ ZyCrypto
Bank of America, the second largest bank in the United States, continues to delve into the crypto industry. The bank set up a research team to capitalize on growing investor interest in digital currencies, a report by Bloomberg shows.
It was a sea of blood in the crypto markets on Thursday. Bitcoin price is holding down about 5.51% and trading at $ 32,809.57. The cryptocurrency fell from around $ 35,077 on Wednesday to the $ 32,000 zone. At the time of writing, BTC appears poised to retest $ 30,000 as sellers remain in control.
BTCUSD chart from TradingView
The world’s second largest cryptocurrency, Ethereum, is also down significantly after suffering a 9.43% decline during Thursday’s trading. Further down the top 20, cryptocurrencies took a significant hit, with Ripple’s XRP down over 6.54% while Polkadot (DOT) lost 11.02% of its value on an adjusted 24-hour timeframe.
BoA is reportedly setting up crypto research team
An internal memo, viewed exclusively by Bloomberg, indicates that BoA has already established a cryptocurrency research team led by Alkesh Shah, a founding member of the bank’s data and innovation strategy group. The team will also research cryptocurrency-related technologies and report to Michael Maras, who leads the bank’s global fixed income, currency and commodities research team.
Bank of America’s head of global research, Candace Browning, said in the memo that cryptocurrencies are now “one of the fastest growing emerging technology ecosystems.”
“We are uniquely positioned to provide thought leadership based on our strong industry research, market-leading global payments platform and blockchain expertise,” added Browning.
A spokeswoman for the multinational bank confirmed the news but did not reveal any further details about the cryptocurrency research project.
Are things changing at B from A?
Bank of America has been playing with blockchain – the technology that underpins Bitcoin – for years. The bank has filed several blockchain-related patents and hired a growing number of blockchain positions.
Nevertheless, the BoA continued to reject cryptocurrencies. In March, the bank released a paper describing Bitcoin as “too volatile and impractical,” adding that the flagship cryptocurrency has completely failed as a store of value.
Additionally, the bank’s CEO Brian Moynihan reiterated during a Congressional barbecue in May that the ban on cryptocurrency transactions is still intact. “Currently we are not lending against cryptocurrencies or banking companies whose main business is cryptocurrency or facilitating trading and investing in cryptocurrencies,” he said at the time.
Now, however, Bank of America appears to be on its way to delving deeper into crypto, albeit slowly. Wall Street counterparts Goldman Sachs, Morgan Stanley and JPMorgan recently expanded their cryptocurrency ambitions.
Bank of America’s new team, devoted solely to cryptocurrency research, suggests that the megabank may experience a radical change of heart.