Morgan Stanley: It will take another 10-15 years for crypto to become mainstream

One of the largest and most influential banks in the world, Morgan Stanley, today shared in a research report what it thinks of the crypto market right now, reports CoinDesk. According to Morgan Stanley, it is abundantly clear that the ‘crypto winter’ has hit it very hard, but it is very likely that construction will continue in the future.

Crypto Winter

The bank said it clearly sees the interest of private investors in the crypto market has largely evaporated. In addition, the bank sees that the extreme volatility that we have seen every now and then in recent months has also decreased sharply. This while the demand for regulated crypto products among traditional investors has increased.

At the moment, the market is “rethinking the value of tokens,” says Morgan Stanley. This is due to the demise of crypto exchange ftx. The market is suspicious and is looking for projects with real value rather than projects that are actually worthless. According to Morgan Stanley, there will therefore be another phase of it deleveraging and several bankruptcies follow.

The leverage in the crypto market is greater in this cycle than in the previous one, according to Morgan Stanley. That’s probably because crypto institutions like market makers, companies and investors are the dominant traders in the market this time. In 2017 and 2018, these were mainly private investors. Part of this leverage will first have to be flushed out of the market, says Morgan Stanley.

Building the future

According to the American investment bank, the future of the crypto industry still looks quite positive. It is stated that there will be a lot of building on the infrastructure that underpins digital assets.

“Crypto, blockchain and distributed ledger technology will continue to evolve in the future and be increasingly used to trade financial assets.”

However, according to Morgan Stanley, it will be quite some time before the world of crypto and blockchain Real mainstream is becoming. The bank notes that many investors expect this to take at least another 10 to 15 years.

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