Morgan Stanley Predicts Fed and ECB Cuts in September, Is the Crypto Market Forward-Looking?
Morgan Stanley's forecast for the Fed and ECB to cut interest rates in September has fueled debate about its potential impact on Bitcoin and the financial market more broadly.
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Morgan Stanley's strategy predicts surprising trends that attract investors around the world. The financial giant suggests that the US Federal Reserve and the European Central Bank (ECB) may reduce interest rates from September. This prediction has sparked debate about its potential impact on various markets, including cryptocurrencies.
There are increasing questions about how this price decline will affect crypto prices in particular, and some expect it to lead to an ongoing bull run around the world.
Economic indicators and expert analysis
Morgan Stanley financial analysts based their forecasts on the latest economic data showing currency cooling on both sides of the Atlantic. Andrew Sheets, the company's chief economist, told CNBC of his optimism, noting encouraging signs from consumer prices and labor market data. But these predictions come from mixed signals from central banks.
While the ECB recently cut interest rates for the first time in almost five years, the Fed continues to argue that the US dollar is still too high for such a move. The newspaper accepts both companies' positions but believes they will have enough evidence by September to show that inflation has fallen.
Recent economic indicators have given mixed signals: Eurozone inflation rose unexpectedly in May, while the US dollar remained stable but grew better than expected. Analysts are now focusing on the upcoming release of the Fed's consumer spending index (PCE), a measure of inflation; This index may further support the interest rate cut situation.
Potential Impact on Cryptocurrency Markets
The possibility of the world's central bank's first interest rate cut has sparked much debate about its potential impact, particularly on the domestic market. Arthur Hayes, a well-known name in the crypto world, discussed how this price cut could support the domestic market and potentially create a new bull market. He pointed out that the central bank's efforts to stimulate the economy through low interest rates may encourage investors to turn to cash as a traditional investment.
According to the latest data, Bitcoin (BTC) is trading at $61,631.71 with a 24-hour transaction volume of 20.2 billion. The cryptocurrency is trading between $62,125.61 and $61,232.12, up 0.56% in the last 24 hours. The Bitcoin market is currently worth 1.2 billion. These figures reflect the ongoing interest and volatility in the credit market, which may be further affected by central bank decisions in the coming months.