How Wall Street’s Lack of Knowledge Could Fuel a BTC Rally

The founder and CEO of Custodia Bank, Caitlin Long, reiterated her belief that Bitcoin (BTC) will take down a global systemically important bank (G-SIB) someday. In an X post published yesterday, Long shared that her prediction is based on the fact that Wall Street views BTC as just another asset class to which it will apply its traditional finance risk models and games.

INDEED. Still making a prediction I first made in yrs ago: that #Bitcoin will take down a G-SIB someday precisely bc #WallSt views it as just another asset class to which it’ll apply its #tradfi risk models & games (eg, collateral substitution). Already happening. Won’t end well. https://t.co/aB5V7AVh9R

— Caitlin Long 🔑⚡️🟠 (@CaitlinLong_) November 23, 2023

Included in her post was another X post from a tech entrepreneur by the name of Mike Alfred. Alfred shared that he has had dozens of conversations with analysts, bankers, traders, and portfolio managers over the past few weeks. An intriguing insight that he has uncovered through these discussions is that none of these Wall Street finance gurus understand Bitcoin.

Over the last few weeks I’ve had dozens of conversations with analysts, traders, bankers, and PMs. One thing is abundantly clear: NOBODY on Wall Street understands Bitcoin.

There are people who trade it occasionally. There are even some who have noted its 100%+ year to date…

— Mike Alfred (@mikealfred) November 22, 2023

In his post, he revealed that although some people on Wall Street trade BTC occasionally and others note its 100+% rally year-to-date, they still view it as a speculative asset. Nevertheless, there is no one on Wall Street who possesses an in-depth knowledge of the leading cryptocurrency.

Alfred concluded his post by predicting that a lot of people on Wall Street will be shocked when BTC soars above $100K. This could then lead to a wave of panic buying from the traditional finance sector, which will launch BTC’s price even higher.

Despite the bullish prediction for BTC, the cryptocurrency’s dominance in the market dropped 0.02% over the past 24 hours. Notably, this decrease in dominance was not the result of a drop in BTC’s price but rather BTC being outperformed by the rest of the market throughout the past day of trading.

BTC / Tether US 1D (Source: TradingView)

CoinMarketCap data indicated that BTC was up 0.28% at press time. Subsequently, the cryptocurrency was trading hands at $37,408.58. This 24-hour gain also boosted BTC’s weekly performance to just under 3%.

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