With traditional banks facing increasing concerns abroad as they are forced to cancel, Morgan Stanley proposes that Bitcoin should become a means for everyone to have value in their personal wallet without any intermediary.
However, according to a recent survey by the Project Investment Bank, the largest digital currency still seems to be related to traditional banking system software.
According to CoinDesk, Morgan Stanley recognizes Bitcoin design as a way to store usage value in a personal digital currency wallet without relying on intermediaries.
Even so, the bank stressed that the price of Bitcoin is subject to US dollar bank liquidity applicability, resulting in transactions as speculative property that are not loaned in currency. This association with traditional banking system software reduces the potential for Bitcoin to act alone.
Morgan Stanley investment analysts Sheena Shah and Kinji C Steimetz explained in a statement that due to the expansion of the central bank's currency, funds have flowed from traditional legal regulations to banks globally into the data encryption industry, and the price of data encryption has increased rapidly in 2020 and 2021. They say that although the Bitcoin Internet can operate without any banks, central bank policies can still harm its prices.
The Morgan Stanley report also mentions that Bitcoin's response to negative news has changed. For example, according to the report, although the price of Bitcoin soared by 20% on Monday after the Federal Reserve meeting and the US Treasury Department's announcement of its applicability to the banking industry, during the period of increased variability last week, the value of Bitcoin and other risky assets and bank stocks fell, with the key being speculative property trading.
Even so, the market prices seen during the uncertainty peak period last week indicate that the rebound was driven by a portion of traders and short order extrusion molding, rather than "global changes in trading dynamics."