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Over 100 Cryptocurrencies Created in Last Week Despite Fall in Prices, Says Morgan Stanley

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Crypto currency coins digital payment system blockchain concept. Cryptocurrency logo set collection isolated on white background. Vector illustration

Morgan Stanley reported that cryptos have traded like risk assets due to the stimulus from governments and central banks, but tighter Fed Policy reversed the momentum.

Source: CoinDesk

BTCUSD up +1.20%ETH USD up +0.49%, SUSHIUSD up +0.33%, XLMUSD up +0.72%

The growth in Bitcoin’s market capitalization has closely tracked the growth in the global M2 money supply, says the report, noting that the crypto market cap grew massively amid central bank easing.

Despite the recent fall in crypto prices, the development of digital assets still remains high, with over 100 created in the last one week, more so on decentralized exchanges. Decentralized finance (DeFi) user growth has followed ether prices.

Morgan Stanley further observed that trading activity has deteriorated during the crypto bear market, with exchange trading volumes of nearly $750M in March, half that of the peak last November.

Bitcoin has had a high correlation with equities starting early 2020 and has had no correlation with gold recently, indicating crypto has been more correlated with the media and entertainment stocks in the US.

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