US bank calls crypto speculative asset

Morgan Stanley’s strategists believe that bitcoin is not trading as a currency but as a speculative asset. According to the bank’s statement, the flagship cryptocurrency significantly sagged as concerns mounted about the US traditional financial market. As a rule, the BTC price grew when traditional banks were under pressure. Morgan Stanley notes that the forced closures of banks in the US could have led to bitcoin’s “moment to shine” but this projection has not come true. Experts are surprised by such a development as digital wallet holders are protected from counterparty risks. Earlier, the bank noted that bitcoin was designed as a way for people to hold value in a private digital wallet without the need for an intermediary. However, MS states that “bitcoin isn't isolated from the traditional banking system” and bears the same risks. The BTC price is supported by “USD bank liquidity, making it trade as a speculative asset rather than a currency,” the report said. At this point, BTC trading becomes similar to speculative asset trading. Despite the fact that blockchain can operate without banks, cryptocurrency prices continue to be influenced by Federal Reserve policy. In practice, the cryptocurrency market needs banks to facilitate money flows into it.