Bank Morgan Stanley believes that investors will increase investment in digital currencies if the U.S. government will be more active in financing the country’s economy.
First of all, it is necessary to abandon a tight monetary policy. To do this, the Federal Reserve should lower the discount rate.
A report published by the bank this week says that the bearish trend in the cryptosphere should end by the spring of 2024. The main event for the industry will be the halving of bitcoin, Morgan Stanley analysts emphasized.
“Cryptozyme” is gradually coming to an end, and the market is preparing to enter a new phase. The driver of the new rally should be the April halving.
The bank noted that bitcoin usually reached the bottom about 12-14 months after soaring to the maximum values. It would then consolidate for several months.
Given that BTC set a new record at the end of 2021, surpassing $68,000, it can be assumed that the cryptocurrency not only reached the fundamentals, but was also able to bounce back due to broader bullish support, according to Morgan Stanley analysts.