Summary
TLDR: Morgan Stanley’s Ellen Zentner predicts a hard landing for the US economy due to high-interest rates and potential recession. Bitcoin’s recent surge is driven by institutional trading strategies, not retail traders, and its price may depend on institutional activity in the future.
Key Points
1. Ellen Zentner, chief US economist at Morgan Stanley, predicts a hard landing for the US economy, citing the effects of recent monetary policy decisions that may lead to a recession within the next 18 months.
2. The US Federal Reserve has raised interest rates at its last three meetings, with analysts reducing expectations of a rate cut in March but predicting a 39% chance of a 100 basis-point cut by the end of the year.
3. Despite concerns about the US economy, Bitcoin has surged to $57,000, driven by institutional trading strategies and on-chain analysis revealing that the average transaction size in the past week was $180,267.82.