According to the latest report shared by investment bank Morgan Stanley, retail investors' interest in digital assets has weakened in the context of the current crisis in the crypto market. However, according to them, the demand for regulated products by institutional clients has increased.
Company experts have noted that after the collapse of FTX and Alameda Research, the market is reconsidering the value of issued tokens and their use as margin collateral.
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Industry participants surveyed by Morgan Stanley expect a new wave of deleveraging and bankruptcies.
Survey participants have not had an easy time naming timelines for completing the process, but these have expressed confidence in the further development of "cryptocurrencies, blockchain and DLT, as well as increasing their role in the trading of financial assets."
According to analysts, the current bear market is reminiscent of the events of 2017-2018, when the price of Bitcoin fell 70% from its highs.