Morgan Stanley advises Bitcoin investors to cash in now and take profits
- Morgan Stanley considers the current phase to be the fall of BitcoinFour-year cycle.
- The bank’s strategists strongly advise Bitcoin investors to cash in now and take profits.
At Morgan Stanley you are convincedthe crypto market is now in the falles four-year-old Bitcoin exchange rate cycle. A Investment strategist of the companyDenny Galindo, explained that the market tends to follow three up years with a down year.
According to him, the beginning of the down year is the crucial time for investors to take profits before the dry spell begins.
Galindo explained that the cyclical character of the market reflect both macroeconomic and microeconomic factors.
On the macroeconomic Page is directed the growth von Bitcoin often after the global expansion of the money supply M2. When liquidity increases, Bitcoin tends to perform well. However, experience shows that when central banks tighten monetary policy conditions, Bitcon enters a cooling phase.
Microeconomically, Galindo compared Bitcoin to commodities like oil and coffee, where speculative buying and leverage drive prices higher before leading to sharp corrections. This analogy suggests that the current Bitcoin run is approaching its peak and then coming to an end.
Crypto ETFs now manage $200 billion in assets
In the Podcast discussion von Morgan Stanley with Michael Cyprys, Head of US Brokers and Exchanges Research, highlighted how institutional investors have gradually increased their exposure to cryptocurrencies.
SEC approval of Bitcoin and Ethereum spot ETFs in 2024 is a more important Factor that cryptocurrencies with traditional investors as safe or acceptable Attachment apply.
The market for crypto ETFs is now managing a fortune of around 200 billion US dollars, and this year alone more than $45 billion flowed into the market.
The largest asset managers are size Institutions How BlackRock and Fidelity, who do that largest Managing assets, what on a massive one interest of institutional investorscan be closed.
Cyprys added that Bitcoin is increasingly seen as a hedge against inflation and currency uncertainty, particularly by those who view Bitcoin as digital gold.
Also the interest of private investors has increased. Morgan Stanley’s financial advisors have stated that the interest theirs Customers of Bitcoin-based products have increased, especially because the Bank the restrictions for the inclusion of Bitcoin ETPs in the Investment portfolios theirs Customers relaxed hat.
However, bank policy forces them to market altcoins such as Ethereum and Solana, with a focus on Bitcoin due to liquidity and regulatory concerns.
CME data shows increase in Bitcoin futures trading
As Bitcoin trading nears the peak of its cycle, recommends Morgan Stanley investors to adjust their positions. The bank’s experts beat a balanced commitment of up to a maximum of 4%, depending on the investor’s risk tolerance, and emphasizes that cryptocurrencies should remain a small part of a diversified portfolio.
CME data confirms this commitment: The volume of crypto futures is year-on-year by over 200% increased and reaches a daily value of over 14 billion dollars. With all that However, Morgan Stanley strategists warn that the “Bitcoin fall” often precedes a shrinking market.
Since historical Data shows that November marks a crucial point in the Bitcoin cyclesends the Bank sends out a strong signal: Although the markets are active, now is the best time to cash in before entering the winter markets.
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