Bitcoin in a gray zone as Morgan Stanley, Goldman Sachs diverge

Bitcoin’s price was stuck in a tight range on Friday as traders and investors’ sentiment waned and Goldman Sachs and Morgan Stanley diverged.

Bitcoin (BTC) was consolidating below $59,000, dropping by almost 7% from its highest point last week. In contrast, global stocks are on track to have the best week in nine months as recession jitters fall. 

Goldman Sachs invests in BTC

A key event in the Bitcoin market happened in this week’s filings by major American banks. Goldman Sachs, one of the most prestigious names on Wall Street, revealed that it had acquired Bitcoin ETF shares worth over $418 million. 

Other prominent companies have invested in these funds, with Millenium Management being one of the largest institutional buyers. Millennium, led by Israel Englander, is one of the most successful hedge funds globally, with over $68.2 billion. Englander is also one of the richest Americans, with a net worth of over $12 billion.

Other top institutions that have invested in Bitcoin ETFs are Barclays, Nomura, HSBC, Bank of America, Jane Street, and Susquehanna. 

However, other institutions have taken a diverging view on Bitcoin. The most prominent is Vanguard, the asset management company with over $7.1 trillion in managed assets. Vanguard has avoided launching spot Bitcoin ETFs while its rivals like BlackRock, Franklin Templeton, and Invesco have, and has ruled out offering Bitcoin and Ethereum ETFs to its clients.  

Meanwhile, there are signs that Goldman Sachs and Morgan Stanley are diverging on Bitcoin ETFs. While Goldman increased its holdings during the quarter, Morgan Stanley reduced its holdings. 

Morgan Stanley still holds Bitcoin ETF shares and has asked its financial advisors to pitch these products to customers. The decline in holdings during the second quarter is likely due to the retreat in Bitcoin’s price.

Bitcoin price is sending mixed signals

Fundamental and technical analysts have mixed opinions on what to expect in the coming months. Some, like Wolfe Research, believe that Bitcoin’s path of the least resistance is downwards. 

Others, like Cryptonary, believe that Bitcoin has multiple catalysts ahead, including the end of the summer season, the conclusion of the U.S. election, and the start of Federal Reserve interest rate cuts. 

Technically, Bitcoin is in a gray area as it remains below the 200-day Exponential Moving Average. It has even formed a death cross as the simple moving average has made a bearish crossover. 

On the positive side, the coin has formed a falling broadening wedge pattern, a popular bullish sign. This pattern will only work out if the coin rises above the year-to-date high of $73,732.