Morgan Stanley Predicts Bitcoin’s Rise as a Reserve Currency with $370B US Holdings
Morgan Stanley’s internal analysis suggests Bitcoin could become a key reserve currency, with the US potentially needing to acquire 3.7 million BTC ($370B) to align with traditional reserve assets. This bullish outlook highlights Bitcoin’s growing dominance over altcoins, though it still trails gold’s historical reserve status.
Morgan Stanley Foresees Bitcoin as a Reserve Currency, Suggests $370B US Holdings
Morgan Stanley’s internal analysis positions bitcoin for potential inclusion in international reserve holdings. The bank’s unpublished report estimates the United States may need to acquire 3.7 million BTC—valued at $370 billion—to match the weighting of traditional reserve assets.
Bitcoin’s dominance grows against altcoins though still trails gold’s historical reserve status. The analysis implies institutional validation of BTC’s monetary properties, with price charts showing resilience amid macroeconomic uncertainty.
Bitcoin’s New Capital Inflow: 16.7% Signals Sustainable Growth
Bitcoin’s 30-Day Capital Rotation metric, reflecting the share of realized capital from new coins, stands at 16.7%—a sign of steady, healthy inflows. Unlike the 2021 retail-driven surge of 53%, current levels suggest a more stable and comprehensive market positioning.
Analyst Axel Adler Jr. highlights this shift as indicative of growing investor confidence. The balanced capital FLOW sets the stage for sustainable long-term growth in BTC, marking a departure from past volatility.
CryptoQuant CEO Shifts Stance on Bitcoin Market Cycle, Cites Institutional Influence
CryptoQuant CEO Ki Young Ju has retracted his earlier bearish outlook on Bitcoin, conceding that traditional cycle theories may no longer apply amid structural market shifts. Institutional capital flowing through ETFs is now absorbing sell-side pressure that once triggered predictable downturns.
"The game has changed," Ju noted in a May 9 analysis. Where previous cycles hinged on whale accumulation and retail speculation, Bitcoin’s 2024 rally demonstrates unprecedented demand from regulated investment vehicles. This fundamental evolution suggests historical top signals may prove unreliable.
BlackRock Engages SEC on Crypto Staking, Tokenization, and ETF Standards
BlackRock, the $10 trillion asset manager, recently met with the U.S. Securities and Exchange Commission’s crypto Task Force to address pivotal regulatory frameworks for digital assets. The discussion centered on staking mechanisms, tokenization protocols, and the evolving standards for cryptocurrency ETFs—key drivers of institutional crypto adoption.
The firm’s growing crypto footprint was underscored by its $32 million Q1 revenue from the iShares Bitcoin Trust and a disclosed $5.4 billion exposure to Bitcoin-linked equities, primarily through MicroStrategy. This strategic positioning aligns with Wall Street’s accelerating embrace of digital assets as a legitimate asset class.
BlackRock’s Bitcoin ETF Marks 18 Consecutive Days of Inflows Amid Crypto Resurgence
BlackRock’s IBIT Bitcoin exchange-traded fund has recorded $69 million in inflows on May 8, extending its streak to 18 consecutive days. The product now holds $63 billion in assets under management, signaling robust institutional demand for cryptocurrency exposure.
Bitcoin’s price trajectory reflects this momentum, nearing its all-time high of $109,000. The sustained ETF inflows suggest growing mainstream acceptance of digital assets as a legitimate investment class.
