Morgan Stanley: Amid the banking crisis, has Bitcoin really had its moment to shine?
Morgan Stanley says that as concerns grow about the forced closure of Silicon Valley banks, this should be Bitcoin’s moment to shine, as holders of Bitcoin in private wallets are supposed to be protected from counterparty risk. But in reality, Bitcoin is not isolated from the traditional banking system and its price is supported by bank liquidity, making it a speculative asset rather than a currency.
Analysts Sheena Shah and Kinji C Steimetz believe that while the Bitcoin network can operate without banks, the price of Bitcoin and its purchasing power continue to be affected by central bank policies, which require banks to facilitate capital inflows into the cryptocurrency market.
