Morgan Stanley Forecasts Crypto Investments Will Rise Next Year
According to Morgan Stanley, there is a strong correlation between government funding and investor interest in digital currencies.
They predict that if the US government takes a more active role in boosting the economy, it will lead to an increase in investment in cryptocurrencies.
One of the steps they suggest is for the Federal Reserve to lower the discount rate, which would allow for a more flexible monetary policy.
In line with this, Morgan Stanley recently published a report stating that the current downward trend in the cryptocurrency market, also known as the “crypto winter”, is expected to end in the spring of 2024.
This prediction is largely influenced by the upcoming Bitcoin halving event in April, which historically has been a catalyst for price increases.
The bank believes that after the halving, Bitcoin will enter a new phase of growth, following a pattern of previous halving events.
With BTC reaching an all-time high of over $68,000 in 2021, Morgan Stanley suggests that the cryptocurrency has not only reached its true value, but also gained the support of more bullish investors.
In conclusion, the bank highlights the importance of government intervention in the economy and its impact on the cryptocurrency market.
