Bitcoin may approach the presence of a place at the government table. Morgan Stanley said the world's largest cryptocurrency is now sufficient to be held as a United States -owned reserve. The bank mentioned Bitcoin's $ 1.07 trillion market capitalization As one of the reasons why the notion is no longer fantasy.
But there is a catch. Bitcoin The swings are still wild in price. That volatility makes it a dangerous stake, especially compared to other currency reserves such as dollars, euro, or yen. While the numbers show that it is growing, Morgan Stanley warns that stability is still a major issue.
Source: CryptoRank
US EYES STRATEGIC BITCOIN RESERVE
In this development, US president Donald Trump took a step ahead. Back in March, the Trump government introduced a new executive order that teaches the government to set up a federal institution to hold Bitcoins. It was discussed similarly to how gold was deposited to the government at Fort Knox.
BTCUSD trading at $96,820 on the 24-hour chart: TradingView.com
A Strategic Bitcoin Reserve is currently on the political agenda. Supporters said the action could put the US ahead of the crypto policy pack and strengthen the financial future. Some go up to claim that it can help national debt.
According to Morgan Stanley's view, if the US is maintained between 12% and 17% of the top crypto supply, it can be compared to the treatment of other currencies in the global reserve. That was involved in seating nearly $ 370 billion in BTC to equal importance to the international market.
Serious report by @MorganStanley.
-Bitcoin has enough market cap to be a reserve, but more mental change than other currency reserves.
-Volatility is decreasing.
-The $ 370B allocation to Bitcoin reflects proportions in market cap.
-Reserve of 12% -17% of Bitcoin's total supply … pic.twitter.com/rffjdobw5z– Troy Cross (@TheTrocro) May 6, 2025
UK and Switzerland said no
As this happens, European governments maintain distance. The UK has already removed the possibility of touching Bitcoin. During the FT Digital Asset Summit, economic secretary Emma Reynolds indicated that the government would look at the crypto regulating and applying a blockchain to public finance -but not holding BTC.
In Switzerland, the central bank is similar to the decision: During its annual meeting, Swiss National Bank Martin Schlegel said that cryptocurrencies do not provide long -term protection of the value required for reserves. He noted the sudden refusal of liquidity as one of the major threats.
Volatility is still the main problem
Whereas Bitcoin lovers can imagine the future, money experts respond to that price volatility is still excessive. Bitcoin supporter Troy Cross admitted that high levels of volatility make it difficult to label the “reserve ready.” But he also said that if the channels were below the important thresholds, the argument for crypto would be stronger.
Featured image from Gemini Imagen, chart from tradingview
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