Sign Up on MEXC
With the crypto market continuing to move in correlation with the U.S. stock market, traders carefully analyze 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 the U.S. stock market could witness a 16% short-term rally. However, the rally will come only in the absence of an earnings capitulation or an official recession.
Morgan Stanley’s Michael J. Wilson Expects a Short-Term Rally
Bear market expert Michael Wilson sees a short-term recovery in the U.S. stock market as S&P 500 tests the 200-weekly moving average (WMA), reported Bloomberg on October 17. The S&P 500 fell 25% this year as the bear hug tightened under rate hikes and worse macroeconomic conditions.
Meanwhile, Bitcoin (BTC) price continues to struggle under $20k, with the 200-WMA near the $23,000 level. Although, there have been several bear market rallies since the BTC price plunged below $20k in June. However, bulls failed to maintain strength and bears takes over, pushing Bitcoin price to dive below $20k again.
Moreover, the 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 nearly 2% in the last 24 hours.
Wall Street’s most prominent bearish voice Michael J. Wilson correctly predicted this year’s downfall. Despite maintaining his overall negative long-term stance on the stock market, he predicts a 16% upside from current levels.
“While that seems like an awfully big move, it would be in line with bear market rallies this year and prior ones.”
Crypto Market Awaits Next Fed Rate Hike
The traders await the next Fed FOMC meeting on November 2 which could potentially drive the market for the next few months. While the recession fears continue to mount, the Fed retains its hawkish stance to curb inflation.
According to the CME FedWatch Tool, the probability of a 75 bps rate hike is 95.4% now, while the Dollar index moves higher near 113.
Meanwhile, Morgan Stanley’s Michael Wilson believes inflation has now peaked. Moreover, the Fed could go with a 50 bps rate hike despite the core CPI jumping to a 40-year high.
- Arkham Uncovers $5 Billion in Untouched Bitcoin From Germany’s Movie2K Seizure
- Ethereum Spot ETFs Record $447 Million in Outflows Amid Crypto Market Decline
- World Liberty Financial Discloses Reason for Blacklisting 272 Wallets
- September 50 BPS Fed Rate Cut Odds Climb Ahead of CPI, PPI Data
- Michael Saylor Spotlights Strategy’s Performance Following S&P 500 Snub
- Solana Price Prediction: Will Solana Hit $320 as SOL Strategies Gains Nasdaq Approval?
- XRP Price Forecast: Analyst Eyes $127 as BlackRock Joins Ripple Swell 2025
- Chainlink Price Eyes $55 as Reserve Holdings Jump With 43,937 LINK Addition
- Cardano Price Targets 30% Surge as Top Economist Calls for Fed Cut
- ETH Price Forecast as Grayscale’s Covered Call Ethereum ETF Spurs Optimism — Is $8,500 in Sight?
