Morgan Stanley Executive Predicts Bitcoin To Witness A Short-Term Rally

Over time, the cryptocurrency market has been closely correlated with US stocks, and Bitcoin has indicated a high correlation with the S&P 500 Index. The price of the underlying crypto asset has followed a similar pattern to the stock.

Several predictions from experts on BTC have been extracted from the stock’s potential outperformance. Also, Bitcoin’s response to critical macroeconomic conditions correlates with the stock index’s response.

Following the correlation between the two markets, some market experts make predictions of future price trends. According to Morgan Stanley’s CIO, Michael J WilsonThe US will see a short-term rise of 16% soon. The bear market expert noted that a price hike would only be possible without an official recession or capitulation gain.

Short-term price recovery in stock markets and the state of Bitcoin

According to Wilson, the US stock market will experience a short-term recovery. This provides the possibility for the S&P 500 to reach its 200-week moving average (WMA), according to Bloomberg.

Due to unfavorable macroeconomic conditions and the effects of higher interest rates, the index has declined this year. However, the current price action of Bitcoin has not been impressive.

The price of BTC is currently below its critical level of $20,000. Also, the 200-WMA is close to the $23,000 area. Even with its short-lived rally in August, Bitcoin has yet to surpass the 200-WMA.

Bitcoin saw several price hikes after the crypto winter that pushed the price below $20,000 in June. But the battle seems to be endless. The bulls still have to take more effective force against the bears while keeping the bitcoin price still hovering below $20K.

Remember that the most prominent bearish voice on Wall Street, Michael Wilson, correctly predicted this year’s decline. His position on the long-term overall negative trend in the stock market remains unfazed. But he currently expects a 16% rise in prices in the short term.

Wait for the next hike from the Feds on prices

Activity in the cryptocurrency market appears to be in flux. Most traders take their time with few or no significant transactions. Instead, they anticipate the outcome of the next Federal Reserve meeting scheduled for November 2. The decision at the meeting will propel the market for the next few months.

Report from CME FedWatch Tool Indicates 95.4% possibility of another 75 basis point increase. Also, the dollar index is moving higher towards 113. Remember that the US Federal Reserve has maintained a tough stance in controlling inflation despite the growing fears of recession.

From Michael Wilson’s analysis, inflation has peaked. Although core CPI data rose to a 40-year high, the Fed may impose a 50 basis point hike on prices.

Morgan Stanley Executive predicts Bitcoin will see a short-term rally
Bitcoin trends on the $19,500 line to BTCUSDT on

At the time of writing, Bitcoin is trading at $19,536, indicating a 1.42% increase over the past 24 hours.

Featured image from Pixabay and chart from

Leave a Comment

Your email address will not be published. Required fields are marked *