Bitcoin

This sits inside a broader divergence: ECB policy is being constrained by sovereign spread stress (France's OAT-Bund spread widening on fiscal/political risk) while the Fed remains data-dependent. Morgan Stanley's fixed-income desk flagging this is significant because it means the 'higher-for-longer' narrative is being quietly downgraded in Europe first. That matters for crypto because European real-yield compression historically precedes rotation into non-sovereign stores of value—gold and BTC—especially when BTC dominance is already elevated (a sign of defensive crypto positioning).

Andrew Sheets of Morgan Stanley discussed the impact of French bond and equity volatility on ECB policy and his firm's approach to European markets.