“A clear and present danger” – Morgan Stanley’s warning may hit Ehth, Yasmi, Kardano, Casa, Bibi
Morgan Stanley analyst has issued a major warning that may affect risky assets, including stocks and cryptocurrencies such as ETHEREUM, Jasmy, Cardano, Kaspa and Pepe.
His statement came because these symbols tried to retreat. ETHEREUM (ETH) price increased to $ 1575, slightly from the lowest level per year to $ 1,385.
The price of Jasmycoin (Jasmy) rose to $ 0.015 on Tuesday, which represents an increase of 70 % over its lowest level this month. Cardano (ADA) increased by 20 % of its lowest point this year.
Other symbols such as Kaspa (KAS) and Pepe (PEPE) also bounced with double numbers of their lowest levels in YTD.
Morgan Stanley’s warning of interest rates
Bitcoin and Top Altcoins such as Cardano, Ethereum, Jasmy, Kaspa and Pepe can have a significant reflection in the event of a statement issued by the Morgan Stanley analyst.
In an interview with CNBC, Seth Carpenter, the highest analyst at the Investment Bank, said that the Federal Reserve may not reduce interest rates this year after all.
He believes that inflation was the main risks facing the American economy this year. He said:
“Inflation has not come to the goal of the Federal Reserve by 2.0 % and is still very high, and we have an upcoming tariff. We know from history that the customs tariff leads to inflation first and hit economic growth. With high inflation as it is, we do not expect the Federal Reserve this year to reduce this year because it will be a clear and present line.”
His statement comes at a time when concerns about the Federal Reserve are raised. Jerome Powell and senior officials such as Austan Fuolsby and Patrick Harker insisted that the bank will be patient when it comes to reducing rates. Their goal is to have evidence that inflation is approaching the goal of 2 %.
The statement also comes at a time when Donald Trump hunts pressure on the Federal Reserve to start lower interest rates. He believes that the bank reduced prices before the elections to help Joe Biden win. Trump is also looking for a scapegoat with a slowdown in the economy and drowning the stock market.
Why bears the warning to ETH, Cardano, Jasmy, Kaspa and Pepe
Morgan Stanley’s warning has a significant effect on all assets, including stocks and cryptocurrencies such as Ethereum, Cardano, Jasmy, Kaspa and Pepe. It also has an effect on assets such as stocks and bond market.
First, if the Federal Reserve hints that it will not reduce interest rates, it will raise fears that Donald Trump may try to launch Jay Powell, the FBI president, and to install another official, such as Kevin Wrash, who will be ready to reduce interest rates.
The President of the United States, who shoots the President of the Federal Reserve, will lead to great fluctuations that affect all assets, including altcoins. On the positive side, there is a possibility that the Supreme Court will not allow it to do so.
Second, the very increasing federal reserve is likely to rotate away from the most dangerous assets, such as cryptocurrencies and stocks. Historically, these assets have reduced performance on the market when the Federal Reserve is very charity and was good when lowering their rates. On the positive side, there are signs that the American economy will slow down, with the high chances of stagnation. As such, there is a possibility that the Federal Reserve will intervene as it has always done in the past. Such a step is likely to enhance encryption prices and shares.
