Morgan Stanley: Crypto Winter May Be Over, Crypto Spring ‘Likely on the Horizon’
Global investment bank
Morgan Stanley’s wealth management division published a report titled “Will
Crypto Spring Ever Come?” this week. Morgan Stanley analyst Denny Galindo outlined that there are four phases of cryptocurrency prices.
“The four-year cryptocurrency cycle roughly corresponds to the four seasons of the year,” he noted.
Galindo
described crypto spring as the period preceding each halving where
“the price of bitcoin generally recovers from the cycle’s low point, but investor interest tends to be weak.”
He pointed out that there have been
three crypto winters since 2011, lasting about 13 months each. The Morgan Stanley analyst shared:
Historically, most of bitcoin’s gains come directly after a ‘halving’ event that occurs every four years. Estimates vary, but history indicates the next halving could occur sometime in April 2024. Signs indicate that ‘crypto winter’ — bitcoin’s cyclical bear-market decline — may be in the past.
The analyst concluded:
“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 so that you can ask questions, monitor trends and determine for yourself if the cycle will repeat a fourth time and whether to invest.”
