Bitcoin (BTC), Ethereum (ETH) and the broader crypto market have been bullish since the beginning of 2023. According to some, crypto has become closely linked to the stock market, which has risen due to a stock rally since the beginning of the year. Meanwhile, Morgan Stanley, one of the major investment firms, issued a warning to BTC and altcoins. Here are the details…
Morgan Stanley issues warning for BTC and altcoin market
cryptocoin.com As we have also reported, the Bitcoin price has skyrocketed in the last two months, climbing along with the stock markets. Bitcoin, Ethereum, and other major cryptocurrencies have added $200 billion in value, fueled by growing expectations that the Fed may be about to bounce back from its interest rate hike program. Now, Morgan Stanley strategists have said they think the latest stock market rally is a “bull trap” and predict that March will bring a stock market crash that could bring the price of Bitcoin, Ethereum and other cryptocurrencies down.
“We think March is a high-risk month as we see the next drop in equities,” Morgan Stanley analysts led by Michael Wilson said in a note seen by Bloomberg.
Cryptocurrency market optimistic for this year
“Stocks are trading lower and this cycle perfectly illustrates that this pattern can happen,” Wilson’s team wrote. Also, according to experts, “techniques can determine the market’s next big move while the uncertainty in fundamentals is rarely this high”. Bitcoin, Ethereum, and the crypto market have been trading in line with high-growth tech stocks since late 2020. When the Fed began raising interest rates and pulling liquidity out of the system for a year, it rose to unprecedented highs without a major crash.
However, the Citi researchers found that Bitcoin and crypto “continue to decline in correlations with equities from last year’s peaks.” Bitcoin, Ethereum and crypto investors, on the other hand, are feeling generally optimistic due to the market’s performance to 2023 so far. “The improving macroeconomic landscape this year has increased risky assets overall, including higher inflation expectations and a slowdown in the pace of central bank rate hikes,” Samir Kerbage, Hashdex’s chief investment officer, said in a blog post, pointing to Bitcoin. He pointed out that BTC “nearly quadrupled the return of the Nasdaq 100” in January. Kerbage said the following:
While we do not foresee a fully upside environment for Bitcoin in 2023, we do expect its price to be higher by the end of the year with the necessary volatility along the way.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram And YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.