Morgan Stanley Cautions High Stakes that US Election Could Impact Market Volatility: Here’s Why

Morgan Stanley, a leading financial provider, has shared different opinions on how the election will affect the crypto market. While the investor awaits crypto assets to react positively to the upcoming US election, the Morgan Stanley team has a different perspective. In a recent report, the lead analysts at Morgan Stanley, Monica Guerra and Daniel Kohen, project that the US election combined with macroeconomic events might affect the crypto market.

The analyst noted the pull and push investors’ sentiment on the US election outcome propelled the crypto price to new heights. They argued that the political outcome and policy changes might positively impact the crypto market, but the business and economic cycles might react differently.  This implies that the prediction of the next US president drives the changes in market performance.

Morgan Stanley Advises Investors to Embrace Long-Term Strategies Amid US Election

From their vast experience, Guerra and Kohen urged the investors to be vigilant and embrace long-term strategies rather than rely on the election outcome. They envisage that most crypto assets will plummet if the election results are released after the agreed dates. 

The analyst explained that if the results are not announced on the agreed dates, the crypto sector will enter a period of uncertainty where the market will experience prolonged volatility. Citing data from the prediction market, Guerra and Kohen noted that the Democrat and Republican candidates are in a tight race. This demonstrated that counting the election and releasing the results might take longer.

If this happens, Morgan Stanley anticipates the delay in election results might create heightened speculation among the community, dragging most assets to the red zone. However, before November 5, the analyst projects that the campaigns will heat up, with each candidate showcasing their suitability to ascend to power. 

Experts Predict US Election to Affect Crypto Market

Advertisement Banner

The analyst noted as the US awaits the October surprise, a political event that might impact the election outcome or delay voting or counting, the crypto market will become volatile. The analyst warned the investors to deploy long-term objectives during the US election period.

The Morgan Stanley prediction came days after the Standard Chartered team projected that Bitcoin would surge exponentially if the Republican candidate won. The giant bank anticipates Bitcoin will reach $73K during the voting day and hit $125,000 if former US president Donald Trump ascends into power.

The Standard Chartered team projects that Bitcoin will register 4% intraday gains and 10% weekly gains during election day. The bank argued that Bitcoin would experience a brief drop before a rebound if Trump’s opponent won.

They anticipate BTC will reach $75K if Kamala Harris wins. The Americans are optimistic the new president will abolish Biden’s anticrypto stance. For the past few months, over 1 million crypto users have vowed to support the presidential candidate, who is willing to challenge Biden’s stance and embrace the friendly policy for digital assets. 

Conclusion

The Morgan Stanley and Standard Chartered prediction demonstrates the need for investors to be prepared for the US election. The analyst believes the election outcome will have far-reaching implications for digital assets.

This implies that the investors embrace long-term strategies regardless of the election outcome. For more updates on how the US election will impact the crypto industry, follow   The Bitjournal on X, Telegram, and LinkedIn.