Morgan Stanley flags growth in crypto-asset issuance

The downturn in the cryptocurrency market has not slowed the pace of issuing new digital assets. Morgan Stanley analysts reached this conclusion, CoinDesk reports.

Around a hundred new tokens appeared in the last week.

Analysts noted that the expected tightening of policy by the Fed contributed to a drop in the cryptocurrency market’s capitalization from a peak of $2.92 trillion to about $1.9 trillion.

Since 2020, the tenfold rise in the metric has closely tracked the global expansion of money supply amid central-bank stimulus during the pandemic. But now, “liquidity-driven” cryptocurrency trading has reversed, the analysts said.

The analysts noted a rising correlation between Bitcoin and equities, and near-zero correlation with gold.

Earlier, BitMEX co-founder Arthur Hayes forecast the fall of the first cryptocurrency to $30,000 by the end of the second quarter as the Nasdaq index declined.

Earlier, Galaxy Digital founder Mike Novogratz warned that Bitcoin would again take off once the Fed paused its tightening of monetary policy.

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