Bitcoin adoption among institutions slow to pick up: Morgan Stanley

According to financial giant Morgan Stanley, blue-chip investors are falling behind when it comes to purchasing Bitcoin (BTC) and other cryptocurrencies.

As Financial Times reported, Morgan Stanley’s analysts Sheena Shah and Kinji Steinmetz indicated that investors who bought or received bitcoin more than six months ago are holding onto their assets, with some perhaps waiting for a price recovery. The report further reads: 

“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.”

Analysts estimate that short-term holders, or organizations that bought their Bitcoin during the last six months, are the owners of the remaining 22% of the currency that is currently in use. The experts also note that the average breakeven price for these investors is $22,000.

The Morgan Stanley professionals claim that although institutions have used consumer demand as a justification for providing crypto-related products to traders over the past few months, the demand hasn’t really increased as they hoped. 

Bitcoin vs Ethereum

Owing to the record-breaking amount of Bitcoin that has not moved in more than six months, some investors may be seeking Ethereum’s switch to proof-of-stake (PoS), which “has changed the trading dynamics” for bitcoin. Notably, Fidelity announced at the very start of this month that its clients will now have access to Ethereum (ETH), the second-largest cryptocurrency by market value.

Amid the ongoing situations, during the second week of this month, Paul Tudor Jones, the hedge fund manager predicted that the value of assets like ETH and BTC may rise in the face of inflation and excessive government spendings. Billionaire investor, Stanley Druckenmiller, also suggested that cryptocurrency could get revived, in accordance with former’s thoughts.