04.05.202614:14 Forex Analysis & Reviews: Morgan Stanley: BTC adoption is at early stage

Meanwhile, as Bitcoin has pulled back sharply from its monthly high around $80,600 and is now trading at about $79,000, Morgan Stanley published a new review on the current state of institutional adoption of Bitcoin.

According to the report, despite growing interest from corporations and funds, the process of mass BTC adoption remains at an early stage. The practice of large players, such as corporates and investment funds, acquiring Bitcoin is only beginning to gain traction, and there is still a long way to go before it becomes a truly widespread asset in their portfolios.

The bank notes that the initial push to integrate BTC into corporate treasuries was driven both by a search for new sources of return and by a desire to diversify assets amid a volatile macroeconomic backdrop, as well as by the emergence of ETFs. However, there are also serious obstacles slowing the process. These include the asset's high volatility, regulatory uncertainty across jurisdictions, and issues around secure custody and management of digital assets.

Morgan Stanley emphasizes that scaling BTC adoption further will require solving a number of key problems. These include the development of more robust, regulated custodial solutions, the creation of transparent, standardized instruments for trading and managing crypto assets, and improved awareness and staff training. As these barriers are overcome, the bank expects a gradual increase in BTC allocations within institutional portfolios.

Trading recommendations:

Regarding Bitcoin's technical picture, buyers are currently targeting a return to $80,300, which opens a direct route to $82,000, and from there to $84,000. The most distant target is the high around $85,600, breaching which would signal attempts to return to a bull market. In case of a decline, I expect buyers at $78,200. A fall below that area could quickly push BTC toward $76,300. The furthest target there would be around $74,700.

Regarding Ethereum's technical picture, a clear consolidation above $2,353 opens a direct route to $2,409. The most distant target is the high near $2,492, breaching which would indicate strengthening bullish sentiment and a return of buyer interest. In case of a decline, I expect buyers at $2,290. A return of the instrument below that area could quickly send ETH toward $2,225. The furthest target there would be around $2,162.

What we see on the chart:

- Red lines indicate support and resistance levels where either a price slowdown or active growth is expected;

- Green lines indicate the 50-day moving average;

- Blue lines indicate the 100-day moving average;

- Light green lines indicate the 200-day moving average.

A crossover, or a price test of moving averages, typically either halts the move or sparks fresh market momentum.