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<\/a><\/div>\nWall Street giant Morgan Stanley believes that crypto winter is over, and Bitcoin\u2019s next halving will kick off a new bull run as it has in the past.<\/p>\n
In a recent report titled \u201cWill Crypto Spring Ever Come?<\/a>\u201d the bank\u2019s wealth management division delved into the four-year cryptocurrency cycle and the significance of Bitcoin\u2019s halving events on market cycles in shaping the crypto landscape.<\/p>\n Morgan Stanley analyst Denny Galindo \u2014 author of the report \u2014 wrote:<\/p>\n \u201cSigns indicate that \u2018crypto winter\u2019 \u2014 bitcoin\u2019s cyclical bear-market decline \u2014 may be in the past.\u201d<\/p>\n<\/blockquote>\n Galindobegan by drawing a parallel between the four-year cryptocurrency cycle and the year\u2019s four seasons. He\u00a0detailed the four distinct phases of the cryptocurrency cycle, with each phase bearing a resemblance to a season:<\/p>\n According to the report, the summer phase commences with the highly anticipated halving event, where the rate of new Bitcoin creation is slashed in half.<\/p>\n Historically, this phase has been marked by substantial price increases in Bitcoin, as scarcity drives demand. It typically culminates when Bitcoin surpasses its previous all-time high, sparking euphoria in the market.<\/p>\n After reaching a new high, Bitcoin garners media attention, attracts new investors, and piques the interest of businesses. This phase is reminiscent of summer, turning into fall as the crypto market basks in the warmth of renewed interest. It spans the period between surpassing the old high and establishing a new peak, marking the climax of the bull market.<\/p>\n Post-peak, the market enters a bearish phase, similar to the onset of winter. The market cools down as investors lock in profits and divest from Bitcoin.<\/p>\n This phase has historically persisted for around 13 months, with prices experiencing significant declines from their highs. It is a time of consolidation, correction, and introspection for the crypto community.<\/p>\n Preceding each halving event, Bitcoin\u2019s price generally rebounds from its lowest point. However, investor enthusiasm tends to remain relatively subdued, much like the cautious optimism of early spring.<\/p>\n This is the period when the crypto market finds its footing again, preparing for the next halving event and the subsequent bull run.\u00a0Galindo highlighted that there have been three crypto winters since 2011, each spanning roughly 13 months.\u00a0He also noted that Bitcoin\u2019s halving event plays a significant role in driving the value of the flagship crypto.<\/p>\n According to Galindo:<\/p>\n \u201cHistorically, most of bitcoin\u2019s gains come directly after a \u2018halving\u2019 event that occurs every four years.\u201d<\/p>\n<\/blockquote>\n This observation lends credence to the notion that a crypto spring may be on the horizon.<\/p>\n The report said there are several key factors to consider in determining whether crypto spring has arrived.\u00a0Historical patterns reveal that the trough of Bitcoin in previous crypto winters typically surfaces about 12 to 14 months after the peak, offering a timeline for market cycles.<\/p>\n Another crucial factor is gauging the decline in Bitcoin\u2019s value from its all-time high.\u00a0Bitcoin<\/a> prices have plummeted by approximately 83% from their previous highs in past crypto winters.<\/p>\n Miner capitulation is also a noteworthy indicator, as many miners cease operations due to financial losses when Bitcoin approaches the trough of past cycles. Miner behavior is monitored through \u201cbitcoin difficulty,\u201d a metric gauging mining ease. Decreasing difficulty signifies proximity to the trough.<\/p>\n The \u201cBitcoin Price-to-Thermocap Multiple\u201d is another critical metric. \u201cThermocap\u201d measures the total investment in Bitcoin since its inception. A lower price-to-thermocap ratio indicates a trough, while a higher ratio suggests a peak in the market\u2019s trajectory.<\/p>\n The report added that price action can also signify the end or beginning of a new cycle. A substantial 50% increase in Bitcoin\u2019s price from its lowest point typically indicates a trough.<\/p>\n However, there have been instances where significant price declines followed such gains.<\/p>\n Wall Street giant Morgan Stanley believes that crypto winter is over, and Bitcoin\u2019s next halving will kick off a new bull run as it has in the past. In a recent report titled \u201cWill Crypto Spring Ever Come?\u201d the bank\u2019s wealth management division delved into the four-year cryptocurrency cycle and the significance of Bitcoin\u2019s halving […]<\/p>\n","protected":false},"author":2,"featured_media":179032,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-179031","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/179031","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=179031"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/179031\/revisions"}],"predecessor-version":[{"id":179034,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/179031\/revisions\/179034"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/179032"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=179031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=179031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=179031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
The Four Seasons of Crypto<\/h2>\n
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Signs of Spring<\/h2>\n