Analysts Suggest Crypto Winter May Be Ending as Crypto Spring Approaches
According to analysts at Morgan Stanley, the crypto market is showing signs that the notorious crypto winter may finally be coming to an end, and crypto spring is on the horizon. Denny Galindo, an Executive Director within Morgan Stanley’s Equity Model Portfolio team, emphasized that while there is still a possibility of setbacks, current data indicates a shift in the market.
“Based on current data, signs indicate that crypto winter may be in the past and that crypto spring is likely on the horizon.”
Denny Galindo, Morgan Stanley
Galindo highlighted that now is a good time to learn about the cyclical tendencies of the crypto market with Bitcoin’s halving approaching. He mentioned that a 50% increase in price from Bitcoin’s low is typically a positive sign that the market has bottomed out. However, he acknowledged that significant declines have followed such gains in some cases.
Bitcoin’s Current State and Future Prospects
As of now, Bitcoin is trading at $28,445, representing a 58% decline from its all-time high in November 2021. Morgan Stanley noted in its report that historically, Bitcoin tends to experience significant gains after a halving event, which occurs every four years. The next halving is expected in April 2024, reducing the block reward from 6.25 BTC to 3.125 BTC.
JPMorgan’s analysts also predict a potential 20% reduction in the Bitcoin hash rate as older mining hardware becomes obsolete due to network changes.
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