Banking giant Morgan Stanley says that blue-chip investors are reportedly lagging behind in terms of investing in Bitcoin (BTC) and crypto.
According to a new report by the Financial Times, strategists Sheena Shah and Kinji Steinmetz from Morgan Stanley published a recent note revealing that a record-setting number of Bitcoin has not moved in over half a year.
“A record number of Bitcoin units haven’t been used for any transaction in the past six months, currently at 78% of total and this number continues to rise.
What this means, if we oversimplify a bit, is that those who bought/received Bitcoin more than six months ago are holding onto their positions, with some likely waiting for a price recovery.”
According to the analysts, the remaining 22% of BTC in circulation are owned by short-term holders, or entities that have purchased their BTC in the last six months. The analysts add that these shorter-term investors have an average breakeven price of $22,000.
Looking at the activity of blue-chip investors, the Morgan Stanley strategists say that even though institutions have cited consumer demand as a means of offering crypto-related products to traders over the last few months, the demand hasn’t picked up quite like they hoped.
“In recent months, traditional financial companies have increasingly been announcing new crypto products to offer their clients exposure to the markets and facilities to be able to buy, sell and hold the underlying crypto…
The companies are saying they have introduced the products due to client demand but looking at the recent flows in and out of exchange traded products and the trends for trading volumes described above, we continue to think that unless there is material upward price volatility it may be difficult to see that real demand pick up materially.”
The analysts also find one of Bitcoin’s chief support areas is the $18,100 level, suggesting that investors are purchasing BTC below this mark.
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The post Banking Giant Morgan Stanley Says Bitcoin (BTC) and Crypto Adoption Among Institutions Slow To Pick Up: Report appeared first on The Daily Hodl.
