Morgan Stanley predicts over 15% Bitcoin (BTC) price rally

With the crypto market continuing to move in line with the US stock market, traders are closely analyzing trends in the S&P 500 index to take Bitcoin positions during the bear market. Now, Morgan Stanley’s CIO and bear market expert Michael J. Wilson predicts that the US stock market could witness a short-term rally of 16%. However, the rally will only come in the absence of an income capitulation or an official recession.

Morgan Stanley’s Michael J. Wilson expects a short-lived rally

Bear market expert Michael Wilson sees a near-term recovery in the US stock market as the S&P 500 tests the 200-week moving average (WMA), reported Bloomberg on October 17. The S&P 500 fell 25% this year as the bear squeeze tightened amid rising interest rates and worsening macroeconomic conditions.

Meanwhile, the Bitcoin (BTC) price continues to struggle below $20k, with the 200-WMA near the $23,000 level. Although there have been several bear market rallies since the BTC price plunged below $20ki in June. However, bulls failed to sustain the strength and the bears take over, pushing the Bitcoin price to dive below $20k again.

Moreover, BTC price has failed to surpass the 200-WMA since a short-term upside in August. At the time of writing, the BTC price is trading at $19,400, up almost 2% in the last 24 hours.

Wall Street’s most prominent bearish voice Michael J. Wilson correctly predicted this year’s doom. Despite maintaining his overall negative long-term view on the stock market, he predicts a 16% upside from current levels.

“While that seems like a very big move, it would be in line with bear market rallies this year and in the past.”

The crypto market is waiting for the next Fed rate hike

Traders await the next Fed FOMC meeting on November 2 which could potentially drive the market in the coming months. As recession fears continue to rise, the Fed maintains its hawkish stance to curb inflation.

According to the CME FedWatch Tool, the probability of a 75 bps rate hike is now 95.4%, while the Dollar Index is moving higher near 113.

Meanwhile, Morgan Stanley’s Michael Wilson believes inflation has now peaked. Also, the Fed could go with a 50bps rate hike despite the core CPI jumping to a 40-year high.

Varinder is a technical writer and editor, technology enthusiast and analytical thinker. Fascinated by Disruptive Technologies, he has shared his knowledge of Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a significant period of time and currently covers all the latest updates and developments in the crypto industry.

The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.