What is the Relationship Between Bitcoin and US Banks? Is There a Risk for BTC? Morgan Stanley Report!

from the USA cryptocurrency bankruptcy of friendly banks of bitcoin It caused it to drop below $20,000.

However, the measures taken by regulators such as the FED and FDIC with the banking crisis led to a rally in BTC and altcoins.

After the positive inflation data yesterday, it exceeded 26,000 dollars. BTCcould not maintain this level and declined to $ 24,400.

According to the news of Coindesk, while there is movement in Bitcoin price, the US bank Morgan Stanley In its latest report, the leading cryptocurrency said that Bitcoin is not isolated from the traditional banking system and its price is supported by US dollar liquidity.

Morgan Stanley analysts Sheena Shah and Kinji C Steimetz pointed out that with the closing of banks in the USA, concerns about the banking sector have increased, and this should be a shining moment for Bitcoin.

“Because USD is backed by bank liquidity, Bitcoin is traded as a speculative asset rather than a currency.

In this context, too, Bitcoin is not isolated from the traditional banking system.

While the Bitcoin network can operate without banks, the price of BTC, and thus its purchasing power, continues to be influenced by central bank policy and needs banks to facilitate flow into the cryptocurrency market.”

Analysts at the end of the report bitcoin He added that crypto prices in general, especially crypto prices, skyrocketed in 2020/2021 due to central bank monetary expansion, and capital shifted from the traditional fiat banking sector to the crypto sector.

Morgan Stanley: The Bitcoin network can work without banks. But Bitcoin price is supported by US bank liquidity. Because #Bitcoin not isolated from the banking system.

— Bitcoin System (@bitcoinsystem) March 15, 2023

*Not investment advice.