Leading investment firm Morgan Stanley has recently provided commentary on the expected end date of the ongoing bad market for Bitcoin. It’s interesting to see that they have some of the same opinions as analysts who have previously made forecasts.
Bitcoin’s Major Halving Factor
The investment firm Morgan Stanley emphasised in an essay the significance of Bitcoin as the top cryptocurrency and the potential effects of its April 2024 halving on the price of Bitcoin and other cryptocurrencies.
Every four years, a deflationary measure known as “Bitcoin halving” takes place, reducing the incentives that miners receive and causing scarcity. The bank states that this occurrence may, as it has in the past, lead to a bull run.
Bitcoin Bear Market Duration: Insights from a US Mega Bank,Bitcoin Bear Market Duration: Insights from a US Mega Bank
The paper also mentioned other instances of these bull runs that followed the three halving occurrences and continued for a period of 12 to 18 months.
Morgan Stanley’s forecast is consistent with the views of a number of cryptocurrency analysts who have said that the next bull run may be triggered by the Bitcoin Halving.
More specifically, seven months after the prior two halvings, Bitcoin broke to a new all-time high (ATH), as noticed by Delphi Digital co-founder Kevin Kell, who also highlighted measures indicating that the next bull run was imminent.
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Recognising The Four Crypto Phases
In an attempt to avoid providing a hard deadline for investing ahead of the next bull run, Morgan Stanley pointed out that understanding the “four phases of cryptocurrency prices” is crucial to making an informed decision about whether to buy. It is stated that these four stages generally map onto the four seasons of the year.
After the halving, there is a first phase known as “Summer,” during which Bitcoin increases the maximum value. It is believed that the event will start the bull run, which will last until Bitcoin reaches its previous peak.
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The price “surpasses the old high” during the “Fall,” which comes next. After hitting a new high, the bull market is now in its last stages.
Winter is when the bear market emerges because investors are locking in their gains at this time, which causes a significant sell-off. Between the “new peak and the next trough,” this typically happens. There have been three winters in the past, each lasting around thirteen months.
Bitcoin Bear Market Duration: Insights from a US Mega Bank,Bitcoin Bear Market Duration: Insights from a US Mega Bank,Bitcoin Bear Market Duration: Insights from a US Mega Bank, Bitcoin Crypto news, Bitcoin News