The downturn in the cryptocurrency market has not slowed the pace of issuing new digital assets. Morgan Stanley analysts reached this conclusion, CoinDesk reports.<\/p>\n
Around a hundred new tokens appeared in the last week.<\/p>\n
Analysts noted that the expected tightening of policy by the Fed<\/span> contributed to a drop in the cryptocurrency market’s capitalization from a peak of $2.92 trillion to about $1.9 trillion.<\/p>\n 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.<\/p>\n The analysts noted a rising correlation between Bitcoin and equities, and near-zero correlation with gold.<\/p>\n Earlier, BitMEX co-founder Arthur Hayes forecast the fall of the first cryptocurrency to $30,000<\/a> by the end of the second quarter as the Nasdaq index declined.<\/p>\n Earlier, Galaxy Digital founder Mike Novogratz warned<\/a> that Bitcoin would again take off once the Fed paused its tightening of monetary policy.<\/p>\n