Morgan Stanley "admits it," Bitcoin hits another new high!

Recently, Morgan Stanley released its latest asset allocation recommendations, officially including crypto assets, especially Bitcoin (BTC), in its "Opportunistic Growth Portfolio" recommendations, with an upper limit of 4%.

This marks the first time a top investment bank with nearly a century of history has officially included Bitcoin in its asset allocation system, signifying another key shift in attitude toward crypto by a Wall Street firm.

Almost simultaneously, Bitcoin's price has been climbing for several consecutive days, following the National Day Golden Week in China. During Asian early trading on October 7, BTC briefly surged to $126,200, setting a new all-time high and surpassing the previous day's high of $125,250.

Meanwhile, during the US stock market session, crypto mining stocks soared across the board: Hive Digital (HIVE) rose 23% in a day, Bitfarms (BITF) gained 14%, and Riot Platforms surged over 10%. The heat around crypto concept stocks quickly intensified, making them one of the biggest focuses in global financial markets this week.

Morgan Stanley: Officially Recommends Allocating to Bitcoin

According to the asset allocation report released by the Morgan Stanley Global Investment Committee (GIC):

• For risk-tolerant clients' "Opportunistic Growth Portfolio", it is recommended to allocate up to 4% in crypto assets

• For the "Balanced Growth Portfolio", the maximum recommended allocation is 2%

• For "Wealth Preservation" or "Fixed Income" portfolios, it is still recommended not to allocate to crypto assets for now

This allocation guide, aimed at 16,000 financial advisors under its umbrella, covers over $2 trillion in client wealth management assets.

The report clearly defines Bitcoin as a "scarce asset," likening it to gold, and states that it possesses key investment attributes such as long-term value storage, inflation hedging, and reducing correlation volatility.

This is not Morgan Stanley's first foray into crypto business. In September this year, the bank also announced that it would launch crypto trading on its E*Trade platform, initially supporting BTC, ETH, and SOL. This has created a full-chain link for its clients from allocation advice to actual trading.

Wall Street Traditional Finance "Shakes Hands" with Bitcoin

Morgan Stanley's "4% allocation recommendation" is not an isolated case, but rather a continuation of the attitude shift across Wall Street. From BlackRock and Fidelity to JPMorgan and Goldman Sachs, more and more traditional financial giants are proactively embracing Bitcoin.

• BlackRock has not only launched the world's largest spot Bitcoin ETF, but its CEO Larry Fink has publicly acknowledged Bitcoin as the "new generation of gold" and encouraged its inclusion in long-term allocations such as pensions.

• Fidelity supported 401(k) retirement accounts to allocate to Bitcoin as early as 2021 and encourages active participation in crypto investment rather than passive observation.

• JPMorgan, although CEO Jamie Dimon still verbally talks down Bitcoin, its asset management division has already made substantial allocations to crypto products, and the Onyx platform provides clients with blockchain payment and custody services.

• Goldman Sachs has even resumed its Bitcoin trading desk and released a report in mid-2025, pointing out that BTC should become a "systemic risk hedging tool."

• Grayscale advocates including Bitcoin as a "core asset," recommending a 5%-10% allocation, and serves institutional clients through products such as GBTC.

It can be said that Bitcoin is no longer an alternative asset, but is gradually entering the mainstream global financial asset allocation sequence.

Bitcoin Continues to Hit New Highs, Technical and Capital Factors Resonate

This new all-time high for BTC is the result of multiple factors resonating. On the technical side, Bitcoin has risen for eight consecutive trading days, showing an extremely strong technical trend.

In the options market, open interest in call options has surged, especially for calls with a $140,000 strike price, indicating that investors are full of confidence in Bitcoin's continued rally this year.

Technical analysts point out that if BTC can hold above $125,000, it is expected to challenge the $128,000 to $130,000 range in mid-October.

In addition, ETF capital inflows are driving a "Bitcoin super buying wave," with continued supply contraction being one of the key drivers of Bitcoin's upward momentum. Last week, net inflows into US Bitcoin ETFs reached $3.2 billion, the second-highest weekly inflow since the beginning of 2024, with total assets under management (AUM) surpassing $7.8 billion.

Jean-David Péquignot (Chief Commercial Officer of Coinbase's Deribit) stated that this Bitcoin rally is a typical case of "macro + structural" factors resonating. He pointed out:

"ETF capital inflows are continuously squeezing spot market supply, while seasonal bullish sentiment and geopolitical tensions are jointly reinforcing Bitcoin's role as a hedging tool."

On-chain data shows that BTC balances on exchanges continue to decline, indicating that more long-term investors are transferring assets off exchanges into cold wallets, reducing market selling pressure. This "more buying, less selling" supply-demand structure is a typical bull market feature.

Summary

From Morgan Stanley's "4% allocation" recommendation to Bitcoin's new all-time high, this is not just an ordinary rally, but a qualitative cycle driven by changes in capital structure, policy shifts, and improved market perception.

Now, Bitcoin is not just a digital currency or a speculative tool, but is moving toward the core of global asset allocation. It is the digital evolution of gold, an important supplement to asset diversification, and a risk hedging weapon in times of high inflation and policy uncertainty.

In the face of this trend, perhaps every investor needs to rethink: Are you still just a bystander?

Author: Bootly