Morgan Stanley: ‘Crypto Winter Might Be Over’

Banking giant Morgan Stanley indicated in its report that the current trends in the crypto market might signal the end of the bear season. The report emphasizes that by examining Bitcoin’s historical cycles, it’s noted that the lowest points come about a year after the peak.

Morgan Stanley has prepared a report presenting evidence suggesting the end of the bear season might be near. In the report titled ‘Will Crypto Spring Ever Come?’ authored by Denny Galindo, the statement “Signs indicate that “crypto winter” (Bitcoin’s cyclical bear-market decline) may be in the past,” stands out.

The most striking indicator provided by the firm is the downturns Bitcoin has experienced in the past. When examining previous seasons, it’s observed that Bitcoin hits a low point 12 to 14 months after reaching its peak. For instance, after recording a historic high of $68,000 in November 2021, Bitcoin plummeted a year later.

“While no one can tell you if now is the right time to buy or sell cryptocurrency, today is the right time to learn more about the crypto market’s cyclical tendencies.”

Is a 50% Increase in Bitcoin the Beginning of Crypto Spring?

According to strategist Denny Galindo, “A 50% price increase from Bitcoin’s lowest level is usually a good sign that the bottom has been reached.” Thus, considering this trend, it’s believed that the current rise during this period might be sustainable. Bitcoin is currently trading at around $29,700…

Additionally, another significant factor that Galindo highlights is Bitcoin’s halving event.

”Historically, most of Bitcoin’s gains come directly after a ‘halving’ event that occurs every four years. This ‘bull run’ period begins with the halving event and ends when the Bitcoin price reaches the previous peak.”

Denny Galindo.

Specifically with halving, the number of Bitcoins produced every 10 minutes is halved every four years. Once there are a total of 21 million Bitcoins in existence, no more will be mined. Halving balances Bitcoin’s inflationary pressure, preserving its value, and can potentially trigger a significant increase in the cryptocurrency’s value.

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