Investment banking giant Morgan Stanley analysts are projecting aggressive interest rate cuts in 2026. The company’s Head of Macro Strategy Matt Hornbach anticipates 7 rate cuts next year, starting in March, which would bring the Federal Reserve’s terminal rate to 2.50% – 2.75%.
Meanwhile, the US Fed already looks poised for two rate cuts this year itself, data from CME FedWatch reveals.
With rate cuts imminent, borrowing is expected to surge, which would flush financial markets with fresh capital. Crypto prices could front-run the Fed’s dovish pivot, paving the way for a parabolic crypto market rally.
Morgan Stanley Sees 7 Rate Cuts In 2026
Morgan Stanley’s Hornbach anticipates a delay in the Federal Reserve’s rate cuts. Instead of a gradual approach, he expects a concentrated burst – specifically, seven cuts in 2026.
Hornbach highlights tariff-induced inflation as the key reason for the delay. Fed Chair Jerome Powell has stressed that the central bank expects a meaningful surge in inflation later this year as a result of the US President Donald Trump’s volatile tariff policy.
However, Hornbach believes that the Fed would have to pivot eventually, as the slowing economic growth remains a major concern as well. The US GDP for 2025 Q1 was revised down to minus 0.5%.
First quarter GDP growth was revised down to -0.5%, a stark drop from the previous quarter's 2.4%. pic.twitter.com/p3zqJbKN3q
— Steven Rattner (@SteveRattner) June 26, 2025
Aggressive rate cuts by the Fed could spark a major crypto rally, as was the case in the post-COVID period.
Why A Parabolic Crypto Bull Market Is Imminent?
If Morgan Stanley’s projection starts appearing likely, the crypto market would frontrun the Fed’s pivot.
As such, the US Federal Reserve and the Treasury Department have been making several quiet yet impactful moves – a trend many experts are referring to as stealth quantitative easing.
On Thursday, the Fed board revised its supplementary leverage ratio standards, which would essentially give the top banks a free rein to buy US Treasury assets.
Its a done deal. The Fed has green lit the SLR rules in their meeting yesterday.
This mean top 5 banks can have free leverage to buy US treasuries, this is the exact same form of stealth QE used in 2020 after COVID. #wegoingup https://t.co/1pNihbXwbs
— MartyParty (@martypartymusic) June 26, 2025
Meanwhile, President Donald Trump has hinted that the US government is looking to extend short-term debt.
Unsurprisingly, the Global M2 money supply is soaring. This measure of global liquidity has a strong correlation with Bitcoin and indicates that the BTC price is headed to $170,000.
Best Cryptos To Buy Now
Bitcoin continues to be at the top of every best crypto to buy now list, especially with the latest projections indicating a rally beyond $150,000.
However, Ethereum and the altcoins could be the ones leading the rally. ETH is in high demand by institutions and mainstream investors, as evident by the recent spot ETF inflows.
Other Layer-1s like Sui, Sei and Hyperliquid are also being viewed as attractive investments.
Meme coins will continue to take the centre stage, with Fartcoin emerging as one of the most attractive buys. Its volume on Coinbase has analysts calling it the Dogecoin of this cycle, with many expecting a rally to $10 this cycle.
Similarly, SPX6900 is another attractive meme coin investment.
Smart money investors aren’t underestimating small-cap memes either. BTC Bull is in high demand just days ahead of its presale launch, with many calling it the next 100x crypto.
Owing to its milestones-based perks, it has emerged as an excellent bet on Bitcoin’s long-term viability. Token holders will earn free Bitcoin, BTCBULL, and token burn events when the BTC price hits certain set milestones.
Similarly, Snorter (SNORT) has emerged as another top pick for the best cryptos to buy now. It is the native token of the Snorter Bot, the fastest Telegram-native crypto trading bot.
Already the fastest Solana sniper bot, Snorter allows for automated snipes, leveraged trading, copy trading and protection against rug pulls and scams. Besides Solana, it will soon launch support for Ethereum and every EVM-compatible chain.
Experts believe Snorter can fill the gap between retailers and whales by offering the former a high level of speed, sophistication and automation. With SNORT, users will be charged only 0.85% trading fee, the lowest of any crypto trading bot.
Unsurprisingly, analysts are eyeing up to 10x returns from SNORT.
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