Morgan Stanley analysts predict a 10% drop in the US dollar this year, driven by anticipated Federal Reserve interest rate cuts exceeding those of the European Central Bank. This decline is attributed to slowing US growth and uncertain trade policies, impacting both global currency markets and crypto asset valuations. The firm expects a 10% depreciation of the USD in 2025, potentially boosting risk assets like cryptocurrencies. Morgan Stanley strategists believe this trend will be driven by factors such as slowing economic growth and US policy uncertainty. Their analysis also highlights potential shifts in global capital flows, indicating a possible advantage for alternative asset markets like Ethereum. The predicted decline in the dollar is significant, with the euro gaining 11.5% against it recently, and experts anticipate prolonged weakness in the USD throughout the year. The impact of this decline goes beyond currency markets; Morgan Stanley’s predictions are expected to influence capital flows, potentially favoring cryptocurrencies and other risk assets.