Morgan Stanley Says Bitcoin Is More Of A Speculative Asset Than A Currency
Morgan Stanley has released their latest research report about the current economic situation and how it affects assets like Bitcoin. According to them, the current banking crisis has presented a perfect moment for Bitcoin (BTC) to shine.
They believe that holding cryptocurrencies such as Bitcoin in a private wallet can protect people from counterparty risk. In addition, Morgan Stanley also commented on how Bitcoin was designed to be a store of wealth that can be held in private wallets.
One of the key benefits of Bitcoin is that it can be stored without any intermediary, according to Morgan Stanley. In the case of fiat currency, people need banks to be operational. But in the case of Bitcoin, a transaction can be made from a private wallet without any third party, such as banks.
Bitcoin Is A Speculative Asset
In a sense, it can be said that Bitcoin can't be separated from the banking system. After all, USD bank liquidity is needed to keep Bitcoin (BTC) trading possible. That's why Morgan Stanley said that it is not a currency but rather a speculative asset.
Technically speaking, the BTC network doesn't need banks but the price of Bitcoin is highly influenced by the Fed policy. We have already seen how Bitcoin lost a big chunk of its value after the Fed started to introduce a series of rate hikes. In addition, the banks are needed to allow the capital to flow into the crypto markets as well.
Another interesting fact highlighted by Morgan Stanley was how Bitcoin reacts to negative news. After the Treasury Department and the Federal Reserve showed their support for the banking sector, Bitcoin (BTC) turned 20% higher.
But last week, Bitcoin turned lower along with banking stocks and risky assets. This means if the core proposition of Bitcoin was indeed true, then it should have gained with the current uncertainty surrounding the banks.