Banking giant Morgan Stanley says Bitcoin (BTC) and crypto adoption among institutions slow to catch on: Report
Banking giant Morgan Stanley says blue-chip investors are reportedly lagging behind when it comes to investing in Bitcoin (BTC) and crypto.
According to a new report from the Financial Times, strategists Sheena Shah and Kinji Steinmetz of Morgan Stanley published a recent note revealing that a record number of Bitcoins have not moved in over half a year.
“A record number of Bitcoin units have not been used for any transaction in the past six months, currently at 78% of the total, and this number continues to rise.
What this means, if we simplify a bit, is that those who bought/received Bitcoin more than six months ago are holding their positions, and some are probably waiting for a price increase.“
According to the analysts, the remaining 22% of BTC in circulation is owned by short-term holders, or entities that have purchased their BTC within the last six months. The analysts add that these short-term investors have an average breakeven price of $22,000.
Looking at the activity of blue-chip investors, the Morgan Stanley strategists say that while institutions have cited consumer demand as a means of offering crypto-related products to traders in recent months, demand has not picked up as much as they hoped.
“In recent months, traditional financial firms have increasingly announced new crypto products to offer their clients exposure to the markets and the facilities to buy, sell and hold the underlying crypto…
The companies say they have introduced the products due to customer demand, but looking at the recent flows in and out of exchange-traded products and the trading volume trends described above, we continue to believe that unless there is significant upward price volatility, it may be difficult to see real demand increase materially.”
The analysts also find that one of Bitcoin’s key support areas is the $18,100 level, suggesting that investors are buying BTC below this mark.
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Featured image: Shutterstock/Tithi Luadthong
