Crypto Bottom Estimates: Bitcoin: Bound? – Morgan Stanley contradicts JPMorgan – 08/10/22 – News

Photo: Unsplash

Because cryptocurrencies correlate strongly with stock markets, but the latter may now have bottomed out, this may also apply to Bitcoin and Co. But it’s not that simple, according to Morgan Stanley.

Many investors believe highly CNBCthat the S&P 500 closed in June at around 3,600 points. Since then, the stock index, which includes the 500 largest publicly traded US companies, has risen about 14.5 percent. Bitcoin has risen by a similar amount since the low. The largest cryptocurrency by market capitalization previously fell by around 75 percent from its all-time high of nearly $69,000 in November 2021 to around $17,600 in June 2022.

But just because the US market may have bottomed out doesn’t mean bitcoin has. Unfortunately, according to Morgan Stanley, it’s not that simple. The American investment bank thus comes to a different conclusion than JPMorgan.

Although this decline is steeper than usual for the digital currency and the correlation to stocks is at an all-time high, it may be too early to see the bottom, quotes say. CNBC Sheena Shah, Morgan Stanley Equity Strategist.

“Based on these observations, it’s hard to say if the bear market is over or if more is coming,” Shah said. “The correlation between bitcoin and the US stock market remains high, and both are sensitive to central bank tightening.”

“For this crypto cycle to find a bottom, we would expect the expectation of a decline in the fiat money supply to become expansionary again, or for crypto companies to increase crypto leverage again,” she added.

Author: Nicolas Ebert, Wall Street: Online central editorial office

A message: ARIVA.DE publishes analysis, columns and news from various sources in this section. ARIVA.DE AG is not responsible for content that has been published by third parties in the “News” area of ​​this website and does not accept it as its own. This content can be identified in particular by a corresponding “from” label under the article title and/or by the link “To read the full article, please click here.”; The named third party is solely responsible for this content.

Disclaimer: The articles offered here are for informational purposes only and do not represent buy or sell recommendations. They should neither be understood as an explicit or implicit guarantee for a specific price development on the mentioned financial instruments nor as a call to action. Buying securities entails risks that can lead to the total loss of the invested capital. The information is not a substitute for expert investment advice tailored to individual needs. A responsibility or guarantee for the timeliness, correctness, appropriateness and completeness of the information provided, as well as for financial losses, is assumed neither expressly nor implicitly.

ARIVA.DE has no influence on the published content and has no knowledge of the content and subject matter of the contributions before they are published. The contributions marked by name are published independently by authors such as guest commentators, news agencies and companies. As a result, the content of the posts cannot be determined by the investment interests of and/or its employees or bodies. Guest commentators, news agencies and companies are not part of the editorial team. Your opinions do not necessarily reflect the opinions and views of and its employees.

Leave a Comment