Morgan Stanley has released a forecast predicting interest rate cuts by the Federal Reserve in 2026. This event could positively affect financial markets, including cryptocurrencies.
The Prediction and Its Market Influence
According to Morgan Stanley's forecast, the Federal Reserve may cut interest rates by 25 basis points at four meetings in 2026, reaching a target range of 2.75%-3.0%. This policy change suggests increased economic liquidity, likely benefiting equity and cryptocurrency markets. In particular, Bitcoin and Ethereum are expected to see increased interest due to improved market conditions.
Historical Context and Price Data
Historical data shows that previous rate cuts from 2019 to 2020 led to significant rallies in major crypto assets. As of August 26, 2025, Bitcoin's price is $110,205.36, with a market cap of $2.19 trillion and a market dominance of 57.76%. Its trading volume increased by 21.94% over the past 24 hours.
Expert Opinion Analysis
Morgan Stanley's Chief Economist, Seth Carpenter, notes that a more pronounced rate-cutting cycle may occur than the market currently anticipates. However, he also expresses certain concerns regarding market expectations for rate cuts. In crypto spaces, trader sentiments may vary amidst evolving liquidity dynamics.
Morgan Stanley's forecast regarding interest rate cuts in 2026 raises interest in potential shifts in financial markets. Lower rates are expected to drive reallocations into growth sectors, including cryptocurrencies.
