• Morgan Stanley predicts a stock crash could bring down prices of crypto assets.
• The sentiment for 2023 is bullish as some believe the price of Bitcoin will reach far beyond what anyone thought possible.
• Some analysts point to improving macroeconomic conditions that could bolster crypto even further.
The prices of bitcoin and other cryptocurrencies have seen good performance in recent weeks, with spikes bringing them to new six-month highs. However, Morgan Stanley has warned that a stock crash could come soon and bring down the prices of these digital assets. Despite this, there is still bullish sentiment for 2023 as some expect the price of Bitcoin to reach far beyond what anyone thought possible. Furthermore, some analysts point to improving macroeconomic conditions that could bolster crypto even further.
Morgan Stanley Predicts a Stock Crash
Morgan Stanley has warned that a massive stock crash could come along soon and bring down the prices of cryptocurrencies like bitcoin. Michael Wilson, an analyst with Morgan Stanley, recently explained: “We think March is a high-risk month for the next leg lower in stocks. Stocks tend to figure it out a month early and trade lower, and this cycle has illustrated that pattern perfectly.“ He added: “With uncertainty on the fundamentals rarely this high, the technical[s] may determine the market’s next big move.“
2023 Could Be Bullish For Crypto
Despite these warnings from Morgan Stanley about potential drops in cryptocurrency prices due to stock market crashes, many industry heads such as Tim Draper are still predicting bullish sentiments for 2023 when it comes to crypto assets like Bitcoin. Draper suggested a $250K price for BTC at one time despite its current low value of $16600 per unit following its all-time high of $68000 last year which saw it drop into doldrums before ending 2022 at its current price level. Further research from Citi also showed that correlation between stocks and crypto has thinned out somewhat in recent years so it remains unclear if stocks crashing would necessarily also mean negative impact on crypto prices too.
Macroeconomic Conditions Could Bolster Crypto Prices
In addition to positive predictions regarding future trends with cryptocurrencies such as Bitcoin by industry leaders such as Draper, some analysts point towards potential improvements in macroeconomic conditions during 2023 which could help bolster crypto asset prices even further. Samir Kerbage – chief investment officer at Hashdex – commented positively about improved inflation expectations and reduced pace rate hikes from central banks saying that these factors “have lifted risk assets in general” while he was hopeful they may be able to provide support for cryptos too given their positive impacts on other markets this year already so far.
Overall it appears there is still plenty optimism surrounding cryptocurrencies such as Bitcoin despite warnings from financial institutions such as Morgan Stanley about potential stock market crashes negatively affecting their values over short term periods during 2023 or otherwise.. Industry leaders remain very optimistic about where their respective coins will go during this period while others point towards potentially improved macroeconomic conditions being able to provide additional support should things worsen elsewhere within markets during 2023 too