Bitcoin’s Rise as a Potential U.S. Reserve Asset: Morgan Stanley’s Analysis

Morgan Stanley has highlighted Bitcoin’s growing prominence in the global financial system, suggesting its market capitalization of $1.87 trillion makes it a viable candidate for inclusion as a U.S. reserve asset. While volatility remains a concern, the bank’s analysis points to a potential allocation of $370 billion to align Bitcoin with global market benchmarks. This could translate to 12%-17% of Bitcoin’s total supply being held as reserves, mirroring traditional reserve asset proportions. Here’s a deeper look at the implications of this development.

Morgan Stanley: Bitcoin Now Large Enough to Be a US Reserve Asset

Morgan Stanley declares Bitcoin’s market capitalization—now at $1.87 trillion—sufficient for inclusion as a U.S. reserve asset. The bank notes, however, that volatility remains a hurdle compared to traditional reserve currencies.

A $370 billion allocation WOULD align Bitcoin’s weight with global market benchmarks. The analysis suggests 12%-17% of total supply as a plausible reserve holding, mirroring proportions seen in other reserve assets.

This evaluation surfaces as the Trump administration moves forward with plans for a Strategic bitcoin Reserve. An executive order in March initiated the creation of a federal custody entity.

Billionaire Paul Tudor Jones Warns of Market Lows, Bitcoin’s Haven Potential in Focus

Billionaire hedge fund manager Paul Tudor Jones has issued a stark warning about U.S. equity markets, suggesting new lows could emerge even if President TRUMP slashes China tariffs by 50%. The remarks come amid heightened volatility in traditional markets, with investors increasingly eyeing Bitcoin as a potential hedge.

Global markets have already felt the trade war’s sting—U.S. equities shed $10 trillion in value following recent tariff escalations. Worldwide corporate valuations plummeted to $100 trillion on April 7, down sharply from $113 trillion just weeks prior. Such turbulence historically correlates with increased crypto market activity.

UK Rejects Bitcoin Reserve Strategy, Citing Market Unsuitability

The United Kingdom has firmly dismissed the possibility of establishing a strategic Bitcoin reserve, with Economic Secretary to the Treasury Emma Reynolds declaring such a MOVE "not good for the market." The statement came during a fireside chat at London’s Financial Times Digital Asset Summit, where Reynolds emphasized cryptocurrencies’ incompatibility with UK treasury strategy.

This stance aligns the UK with Japan’s recent rejection of Bitcoin as a treasury asset, both nations diverging from the US approach under former President Trump. The debate over national crypto reserves gained momentum after Trump’s 2020 proposal, but major economies continue viewing digital assets as speculative rather than reserve-worthy.

Billionaire Investor Ricardo Salinas Pliego Advocates Bitcoin Over Real Estate

Mexican billionaire Ricardo Salinas Pliego, ranked as the fifth wealthiest individual in Mexico, has publicly endorsed Bitcoin as a superior investment compared to real estate. In a recent post on X, the Grupo Salinas founder dismissed property investments as "an expense" while championing the world’s largest cryptocurrency.

The comments carry weight given Pliego’s extensive investment background. His conglomerate Grupo Salinas spans media and telecommunications, while he also oversees the family-inherited Grupo Elektra business empire. This marks another high-profile institutional validation for Bitcoin amid growing institutional adoption.