According to 13F filings with the U.S. Securities and Exchange Commission (SEC), Millennium Management, a highly successful hedge fund, holds nearly billion in spot bitcoin exchange-traded fund (ETF) shares. This week, it was further revealed that Morgan Stanley, a giant multinational investment and financial services firm, also has exposure to spot bitcoin ETFs. Top […]
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Morgan Stanley to Broaden Availability of Spot Bitcoin ETFs: Report
Morgan Stanley, a leading global investment bank, is reportedly considering expanding access to bitcoin spot exchange-traded funds (ETFs). The firm may soon authorize its approximately 15,000 brokers to actively solicit customer purchases. Morgan Stanley to Widen Access to Spot Bitcoin ETFs Global investment bank Morgan Stanley is contemplating broadening access to spot bitcoin exchange-traded funds […]
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Morgan Stanley: US Dollar Has No Credible Challengers; Reserve Currency Status to Endure
The U.S. dollar is likely to remain the world’s dominant reserve currency due to the absence of credible challengers. Morgan Stanley suggests that the Chinese yuan, often considered a potential rival to the U.S. dollar, currently falls short and is unlikely to dethrone the greenback. Reserve Managers to Grapple With U.S. Dollar According to the […]
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Legendary Investor Stanley Druckenmiller Dumps Big Tech, Bets on AI and Gold
Stanley Druckenmiller, the legendary investor who was part of George Soros’ Quantum Fund, has dumped traditional tech stocks while putting funds into gold mining companies and artificial intelligence (AI) shares. According to filings, he sold Amazon, Alphabet (Google), and Broadcom stocks while acquiring shares of Barrick Gold and Newmont, two gold miners. Stanley Druckenmiller Sells […]
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Morgan Stanley on Decline of US Dollar, JPMorgan Warns of a BTC Selloff, BTC Mining Improved, and More — Week in Review
Morgan Stanley has raised concerns about the potential decline of the U.S. dollar’s dominance due to the increasing interest in digital currencies. Meanwhile, JPMorgan has warned of a potential bitcoin selloff, anticipating a billion outflow from Grayscale’s Bitcoin fund. The profitability of Bitcoin’s SHA256 algorithm in mining operations has significantly improved, now ranking as the third most lucrative proof-of-work network. Finally, Jim Cramer of CNBC’s Mad Money expressed skepticism about bitcoin’s future, doubting its ability to recover amidst ongoing market challenges.
Morgan Stanley Sounds Alarm on US Dollar’s Dominance — Says Crypto Could Significantly Alter Currency Landscape
Morgan Stanley has warned about the risk of the U.S. dollar losing its dominance, fueled by growing interest in digital assets, including bitcoin. The investment bank stated: “A clear shift towards reducing dollar-dependency is evident, simultaneously fueling interest in digital currencies such as bitcoin, stablecoins, and CBDCs.”
JPMorgan Warns of Incoming Bitcoin Selloff With Anticipated Billion Grayscale Outflow
Global investment bank JPMorgan has warned of additional outflow from Grayscale’s bitcoin fund, cautioning that it will put “further pressure on bitcoin prices over the coming weeks.” The bank’s analyst also explained that the billion inflow into new spot bitcoin exchange-traded funds (ETFs) “reflects a rotation from existing bitcoin vehicles” or “from retail investors shifting from digital wallets held with exchanges/retail brokers to cheaper spot bitcoin ETFs.”
Mining Digital Gold — These Are the Most Profitable Proof-of-Work Algorithms in 2024
In September 2022, Bitcoin’s SHA256 algorithm ranked as the seventh most lucrative proof-of-work (PoW) network for mining. Fast forward a year and four months, and this algorithm has ascended to become the third most profitable crypto network for mining operations.
Mad Money Host Jim Cramer Doubts Bitcoin Will Find Its Footing as Selloff Continues
Jim Cramer, the host of CNBC’s Mad Money show, has doubled down on his bearish bitcoin price outlook, predicting that the cryptocurrency will continue to struggle against the backdrop of a plummeting crypto market. “Unlikely that bitcoin finds its footing,” Cramer emphasized, after previously declaring the recent price drop a “nasty beginning” to a significant downward spiral.
Where would you put crypto market sentiment right now? Share your thoughts and opinions about this subject in the comments section below.
Morgan Stanley Sounds Alarm on US Dollar’s Dominance — Says Crypto Could Significantly Alter Currency Landscape
Morgan Stanley has warned about the risk of the U.S. dollar losing its dominance, fueled by growing interest in digital assets, including bitcoin. Emphasizing that the U.S. dollar’s dominance “is being increasingly scrutinized,” the investment bank stated: “A clear shift towards reducing dollar-dependency is evident, simultaneously fueling interest in digital currencies such as bitcoin, stablecoins, and CBDCs.”
Morgan Stanley on Dedollarization Risk
Morgan Stanley published a report last week titled “Digital (De)Dollarization?” written by Andrew Peel, the investment bank’s executive director and head of Digital Asset Markets.
“The U.S. dollar’s dominance as the cornerstone of the international financial system is now being reconsidered in the face of evolving geopolitical shifts and the growing U.S. twin
deficits,” the executive said, adding:
Notably, the recent growth in interest of digital assets such as bitcoin, growth of stablecoin volumes, and the promise of central bank digital currencies (CBDCs), have potential to significantly alter the currency landscape.
He noted that the U.S. dollar’s dominance “is being increasingly scrutinized” as “Recent U.S. monetary policies, combined with the strategic use of economic sanctions, have prompted some nations to consider alternatives to the greenback.”
Meanwhile, “the European Union is actively working to bolster the euro’s role in international trade, aiming to provide a viable alternative to the dollar” and “China is advancing the yuan in international trade,” the director detailed.
The Morgan Stanley executive director further explained that inter-governmental organizations such as the BRICS economic bloc (Brazil, Russia, India, China, and South Africa), the Association of Southeast Asian Nations (ASEAN), the Shanghai Cooperation Organization (SCO), and the Eurasian Economic Union “are also expressing interest in using local currencies for trade invoicing and settlements.”
Noting that these organizations “collectively represent a significant portion of global GDP,” Peel stated that “some members have shown a willingness to trade in yuan, further indicating a shift in global currency dynamics.” He emphasized:
A clear shift towards reducing dollar-dependency is evident, simultaneously fueling interest in digital currencies such as bitcoin, stablecoins, and CBDCs.
Do you agree with Morgan Stanley about the risk of the U.S. dollar losing its dominance? Let us know in the comments section below.
Morgan Stanley: Crypto Winter May Be Over, Crypto Spring ‘Likely on the Horizon’
Global investment bank Morgan Stanley believes that “crypto winter may be in the past and that crypto spring is likely on the horizon.” An analyst at the bank explained that historically, most of bitcoin’s gains come directly after a halving event that occurs every four years.
Morgan Stanley Foresees Crypto Spring
Global investment bank Morgan Stanley’s wealth management division published a report titled “Will Crypto Spring Ever Come?” this week. Morgan Stanley analyst Denny Galindo outlined that there are four phases of cryptocurrency prices. “The four-year cryptocurrency cycle roughly corresponds to the four seasons of the year,” he noted.
“Just as a farmer avoids planting seedlings in the winter or too late in the spring, crypto investors want to know when crypto spring has arrived to maximize their investment ‘growing season,’” the analyst opined. While stating that “there have only been three crypto springs to date” and acknowledging that “there is still a lot to learn,” he emphasized:
Based on current data, signs indicate that crypto winter may be in the past and that crypto spring is likely on the horizon.
Galindo described crypto spring as the period preceding each halving where “the price of bitcoin generally recovers from the cycle’s low point, but investor interest tends to be weak.” He pointed out that there have been three crypto winters since 2011, lasting about 13 months each.
The Morgan Stanley analyst further shared:
Historically, most of bitcoin’s gains come directly after a ‘halving’ event that occurs every four years.
“Estimates vary, but history indicates the next halving could occur sometime in April 2024,” Galindo detailed, reiterating: “Signs indicate that ‘crypto winter’ — bitcoin’s cyclical bear-market decline — may be in the past.”
The analyst concluded: “While no one can tell you if now is the right time to buy or sell cryptocurrency, today is the right time to learn more about the crypto market’s cyclical tendencies so that you can ask questions, monitor trends and determine for yourself if the cycle will repeat a fourth time and whether to invest.”
A growing number of individuals and analysts have expressed optimism regarding the outlook for bitcoin and the overall cryptocurrency market. In April, Standard Chartered Bank said crypto winter is over, predicting that the price of bitcoin could reach 0K next year. In March, the CEO of investment management firm Vaneck said: “We are at the very beginnings of what could be a several-year cycle” in gold and bitcoin. Crypto financial services platform Matrixport predicted this week that bitcoin’s price could surge to between K and K if the U.S. Securities and Exchange Commission (SEC) approves Blackrock’s spot bitcoin exchange-traded fund (ETF).
Do you agree with the Morgan Stanley analyst about crypto spring? Let us know in the comments section below.
Hedge Fund Mogul Stanley Druckenmiller Warns of ‘Hard Landing’ for US Economy
Billionaire hedge fund manager Stanley Druckenmiller has a dire prediction for the U.S. economy: a recession is looming, and it’s likely set to hit this June. Druckenmiller’s forecast comes as American consumer spending remains low, and is largely driven by credit card usage. Druckenmiller, a seasoned investment mogul, warns that it would be foolish to ignore the possibility of a “really, really bad” scenario unfolding.
Druckenmiller Cites Drop in Consumer Spending and Banking Industry Turmoil as Recession Indicators
At the 2023 Sohn Investment Conference in San Francisco, Stanley Druckenmiller sounded the alarm on the U.S. economy. While others may be optimistic about a “soft landing,” the seasoned hedge fund manager is bracing for impact, predicting a “hard landing” instead.
Druckenmiller, who has enjoyed 30 years of success in the hedge fund industry, cited the sharp drop in consumer spending and the recent banking industry turmoil as key factors behind his forecast. Druckenmiller’s warnings about the U.S. economy are echoed by other notable figures in the financial world.
Other famed investors, including Barry Sternlicht, David Rosenberg, and Jeffrey Gundlach, have also expressed concerns about a “hard landing” in the United States. At the Sohn conference, Druckenmiller elaborated on his prediction, citing rising unemployment, a 20% drop in business profits, and a surge in bankruptcies as key indicators of a recession.
However, he was quick to clarify that he doesn’t anticipate a crisis worse than the 2008 financial meltdown. Druckenmiller said:
I am not predicting something worse than 2008. It’s just naive not to be open-minded to something really, really bad happening.
Druckenmiller Remains Optimistic About Post-Recession Opportunities
While some experts, such as Goldman Sachs Global Investment Research and Wendy Edelberg of The Hamilton Project, are predicting a “soft landing” for the U.S. economy, Druckenmiller has an entirely different outlook. Druckenmiller is bracing for a recession, but he’s also optimistic about the future.
In fact, he believes that there will be “unbelievable opportunities” in the coming years, particularly in the field of artificial intelligence (AI). Druckenmiller sees the post-recession landscape as a fertile ground for innovative technologies and cutting-edge solutions “present themselves.”
Druckenmiller stated:
AI is very, very real and could be every bit as impactful as the internet — AI could eventually spawn 0-billion [in] companies.
At the Sohn Investment Conference, Stanley Druckenmiller didn’t mince words when it came to his opinion of the Federal Reserve’s current policy. Druckenmiller believes that the U.S. central bank has exhausted its resources in the fight against inflation and recession. “We basically wasted all our bullets,” he lamented.
What do you think about Stanley Druckenmiller’s predictions for the U.S. economy? Do you agree with his assessment, or do you have a different outlook? Share your thoughts in the comments section below.
Morgan Stanley Strategist Warns of Equities Sell-Off in Response to ‘Hawkish’ Fed Message
On Monday, Morgan Stanley’s equity strategist, Michael Wilson, shared his thoughts on the state of Wall Street. He expressed his belief that a sell-off could be imminent, and that this could occur as a result of U.S. Federal Reserve chairman Jerome Powell’s upcoming remarks on Wednesday. Furthermore, there has been a great deal of conjecture surrounding the possibility of the central bank cutting the federal funds rate multiple times throughout the year. However, Wilson believes that investors who are expecting this outcome will ultimately be disappointed.
Powell’s Message Could Spark a ‘Near-Term Negative Surprise for Equities’
This Wednesday, all eyes will be on the Federal Open Market Committee (FOMC) meeting, as the U.S. Federal Reserve is poised to raise the benchmark interest rate by 25 basis points (bps). While some economists predict that this hike will be the final one of the year, a few market observers anticipate multiple rate cuts in the future. These speculators point to the recent banking industry turmoil in the U.S. as a potential catalyst for the Fed to loosen its monetary policy.
However, there are several analysts who believe that investors expecting cuts are in for a rude awakening. They caution that the Fed’s commitment to holding rates high and not cutting this year is unwavering, due to persistent inflation. According to Morgan Stanley’s equity strategist, Michael Wilson, U.S. equity markets may be in for a rough ride this week if chairman Jerome Powell fails to meet the market’s expectations of a benchmark rate cut.
Wilson warns that a “hawkish” message from Powell could trigger a “near-term negative surprise for equities,” causing a sell-off. Wilson also notes that the market has grown increasingly reliant on tech stocks with large valuations, which could exacerbate the impact of any negative news. Furthermore, he warns that investors who are banking on the Fed cutting rates this year are likely to be frustrated with the outcome.
“We believe that equities are priced for an optimistic policy outcome (rate cuts in ’23 without the growth downside),” Wilson stated in his note to investors.
Fed Officials Desire to Avoid the Mistakes of Past Fed Chairs
The sentiment that the Federal Reserve will maintain its strict stance on interest rates is not limited to Morgan Stanley’s equity strategist. Claudia Sahm, an American economist and macroeconomic expert, echoed this sentiment on Sunday, stating that Powell had made it clear that the Fed would not cut rates this year and that people should “believe him.”
In a Twitter thread, Sahm thinks the Fed’s stance will be strict for three reasons: the desire to avoid the mistakes of past Fed chairs, the reverence for former chair Paul Volcker’s approach to monetary policy, and the personal experiences of current Fed officials with high inflation in the 1970s and early 1980s. Sahm tweeted:
Markets expect the Fed to cut multiple times this year—referred to as a pivot—while the Fed says it will hold rates high and not cut this year. I believe the Fed.
In response to Claudia Sahm’s comments on the Federal Reserve’s commitment to holding rates high, the Twitter account Wall Street Silver pointed out that while Paul Volcker’s monetary policy and the emergence of new oil sources in the early 1980s helped control inflation, the underlying problems persist.
“The Fed can’t solve this problem,” Wall Street Silver said. They can kill the economy, but as soon as rates come down, the same underlying problems exist and inflation roars back. The Fed only has one tool and will print us into oblivion eventually, because they can’t fix this.” Sahm clarified that she was merely explaining “how the history is viewed inside the Fed, not what’s true.”
Do you think the Federal Reserve’s commitment to holding rates high will be enough to control inflation, or will the underlying problems persist and lead to a potential economic crisis? Share your thoughts in the comments section below.
US Markets Tumble as Real Estate Weakens, Putin Suspends Nuclear Treaty, Morgan Stanley Warns of Stock Market ‘Death Zone’
On Tuesday, all four major U.S. benchmark stock indexes fell as real estate data showed home sales dropped by 0.7% last month and Russian President Vladimir Putin suspended the nuclear arms control treaty with the United States. Additionally, the chief U.S. equity strategist at Morgan Stanley said the stock market is in a “death zone” and could drop another 26%.
Investor Fears of a Prolonged Recession Swell, U.S. Tensions With Russia Further Disrupt Global Markets
On Tuesday, markets traded lower compared to the previous day as investors have been shaken by the current macroeconomic backdrop. The National Association of Realtors (NAR) published a report on Tuesday showing the U.S. real estate market weakening, with home sales slipping 0.7% in January. The price of gold and silver as well as the crypto economy dropped, with the latter shedding 1.37% over the last 24 hours, down to .11 trillion. Stocks followed the same pattern, with all four major stock indexes (DJI, GSPC, IXIC, RUT) dipping 1.9% to 2.79% lower.
The NAR report, coupled with the continued elevated inflation, has investors worried that the U.S. Federal Reserve will continue to hike rates, and some think it could crush the U.S. economy. Moreover, tensions between the United States and Russia rose significantly on Tuesday, and many believe we are on the brink of a third World War. Russian president Vladimir Putin suspended the New START Nuclear Treaty and put missiles on combat readiness.
Putin said that the West partook in establishing a “despicable method of deceit” when the U.S. and other nations got involved with Syria, Libya, and Iraq. “Russia suspends its participation in the New START treaty,” Putin stressed at the national event. The nuclear treaty, signed by former presidents Dmitry Medvedev and Barack Obama in 2010, was meant to prevent nuclear testing and war. Putin’s speech isn’t sitting well with global investors, as the Ukraine-Russia conflict has dampened the global economy.
Morgan Stanley Strategist Warns of ‘Death Zone’ for U.S. Stock Market
Furthermore, Morgan Stanley strategists do not believe the U.S. central bank and chair Jerome Powell will pivot this year. The chief U.S. equity strategist at Morgan Stanley, Michael Wilson, has warned that the stock market is now in the “death zone.” Wilson detailed that the “death zone” name is a common term in mountaineering, where people who climb to extremely high altitudes lose oxygen. Wilson believes equity markets are in a similar death zone, and he predicts the S&P 500 (GSPC) could slide 3,000 points in a quick period of time.
“Many fatalities in high-altitude mountaineering have been caused by the death zone, either directly through loss of vital functions, or indirectly by wrong decisions made under stress or physical weakening that lead to accidents,” Wilson explained in his note to investors. “This is a perfect analogy for where equity investors find themselves today, and quite frankly, where they’ve been many times over the past decade.”
Between the economy’s rising inflation, the U.S. real estate slump, and rising tensions with other nations, the issues in the U.S. keep mounting. The headwinds from the Fed’s higher interest rates and the cost of living rising every day for average Americans have slowed the country’s growth, and many suspect a long recession is due. Furthermore, a recent study shows that 55% of Americans believe they will lose everything if a recession hits the United States. A majority of the study respondents (three out of four) suspect a recession will come to fruition this year.
What do you think about the current state of the stock market and the mounting economic concerns in the United States? Do you agree with the Morgan Stanley strategist’s warning about the ‘death zone,’ or do you have a more optimistic outlook for the future of the U.S. economy? Share your thoughts in the comments section below.