Bitcoin Hits Critical Mass—Morgan Stanley Flags It As Reserve-Grade
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Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Bitcoin could be getting closer to having a place at the government table. Morgan Stanley states that the world’s largest cryptocurrency is now large enough to be held as a reserve asset by the United States. The bank cited Bitcoin’s $1.07 trillion market capitalization as one of the reasons why the notion is no longer a fantasy. But there’s a catch. Bitcoin still swings too wildly in price. That volatility makes it a risky bet, especially when compared to other reserve currencies like the dollar, euro, or yen. While the numbers show it’s growing, Morgan Stanley warned that stability is still a major issue. Source: CryptoRank US Eyes Strategic Bitcoin Reserve With this development, US President Donald Trump went one step ahead. Back in March, the Trump government introduced a new executive order instructing the government to set up a federal institution to hold Bitcoins. It is being discussed similarly as how gold is being deposited with the government in Fort Knox. BTCUSD trading at $96,820 on the 24-hour chart: TradingView.com A Strategic Bitcoin Reserve is currently on the political agenda. Backers say the action would potentially put the US ahead of the pack in crypto policy and fortify its financial future. Some go so far as to claim it could aid in the national debt. According to Morgan Stanley’s perspective, if the US were to maintain between 12% and 17% of the top crypto’s supply, it would be comparable to the treatment of other currencies in global reserves. That would involve sitting on about $370 billion in BTC to equal its international market significance. Serious report by @MorganStanley.-Bitcoin has sufficient market cap to be a reserve, but is more volatile than other reserve currencies.-Volatility is decreasing.-$370b…
Filed under: News - @ May 7, 2025 10:23 pm