Morgan Stanley Says Crypto Markets Are Weakening as Central Banks Look to Tighten

Morgan Stanley Says Crypto Markets Are Weakening as Central Banks Look to Tighten
Low interest rates, expansion of central bank balance sheets, and government stimulus were all “drivers of exponential cryptocurrency price rises” in the last two years, Morgan Stanley said in a research note.Leveraged crypto markets are now weakening as the U.S. Federal Reserve and other central banks look to slow their balance sheet expansion and prepare the markets for interest rate hikes, the bank’s head of cryptocurrency research, Sheena Shah, wrote in a report published last week.Retail investor sentiment on social media has also started to turn less bullish since late last year with the recent downward price momentum also contributing…