{"id":195018,"date":"2023-10-19T11:39:00","date_gmt":"2023-10-19T11:39:00","guid":{"rendered":"https:\/\/tokenstalk.info\/?p=195018"},"modified":"2023-10-19T11:39:00","modified_gmt":"2023-10-19T11:39:00","slug":"morgan-stanley-indicates-imminent-bullish-turn-in-crypto-market","status":"publish","type":"post","link":"https:\/\/tokenstalk.info\/crypto\/morgan-stanley-indicates-imminent-bullish-turn-in-crypto-market\/","title":{"rendered":"Morgan Stanley Indicates Imminent Bullish Turn in Crypto Market"},"content":{"rendered":"

According to Morgan Stanley (NYSE: MS), cryptocurrencies have shifted from being media darlings for their meteoric rise in value to becoming subjects of scrutiny due to instances of financial loss, exchange failures, and fraudulent schemes. As investors tread through this volatile terrain, insights from previous cryptocurrency trading cycles could serve as crucial navigation tools.<\/p>\n

In a report (titled \u201cWill Crypto Spring Ever Come?\u201d) published by Morgan Stanley Wealth Management on October 17, MS points out that Bitcoin is the cornerstone of the crypto market, making up about 50% of the total digital asset market capitalization. One of its defining attributes is the \u201chalving\u201d mechanism, designed to create a limited supply to preserve Bitcoin\u2019s value. Every four years, the production rate of new bitcoins is reduced by half, and this will continue until the maximum supply of 21 million bitcoins is reached.<\/p>\n

MS discusses how this intentionally restricted supply of Bitcoin can affect its price by catalyzing bullish market trends. Since its introduction in 2011, Bitcoin has experienced three such bullish cycles, each initiating between 12 to 18 months after a halving event.<\/p>\n

Based on MS\u2019s analysis, the cryptocurrency market follows a four-year cycle, analogous to the four seasons:<\/p>\n

    \n
  1. Summer<\/strong>: According to MS, the most significant growth in Bitcoin\u2019s price generally occurs immediately after a halving event, ceasing when it reaches its previous highest point.<\/li>\n
  2. Autumn<\/strong>: When Bitcoin breaks past its previous peak, it garners media attention and attracts new investors, says MS. This heightened interest can push the price to new highs, ending the current bull market.<\/li>\n
  3. Winter<\/strong>: MS notes that this phase sets in when investors decide to liquidate their holdings, triggering a market downturn and deterring new investments. Such periods have historically lasted about 13 months.<\/li>\n
  4. Spring<\/strong>: This season is characterized by price recovery from the market\u2019s lowest point, although MS mentions that investor enthusiasm usually remains muted during this period.<\/li>\n<\/ol>\n

    MS advises investors to consider several factors to identify if \u201cCrypto Spring\u201d is indeed here or if the market is still undergoing a \u201cCrypto Winter\u201d:<\/p>\n