The financial behemoth speculates that the cold days of the crypto winter may be behind us in a recent post on its website. The investment manager believes that current evidence points to a potential end to the crypto winter and the coming of a good crypto spring.

In the past, when there have been crypto winters, Bitcoin typically reached its bottom 12 to 14 months after peaking. Notably, Bitcoin experienced an all-time high in November 2021 of almost $68,000 and a low point a year later.

Morgan Stanley strategist Denny Galindo notes that a 50% increase in the price of Bitcoin from its low is frequently a sign that things may be improving.

Bitcoin has experienced a notable recovery, increasing by 70% year to date and an astounding 77% from the lows recorded last year.

Galindo emphasizes the significance of the drawdown’s extent by pointing out that past price lows were normally roughly 83% below their corresponding highs. By November 2022, Bitcoin had decreased by over 77% to about $16,000.

One important realization made by Morgan Stanley is the significance of Bitcoin price-halving events in causing major price changes. A Bitcoin block’s reward is reduced by half every four years during a process known as “Bitcoin halving.” This decrease in the availability of new bitcoins could lead to a shortage and a subsequent rise in price.

Galindo points out that following halving events, Bitcoin has typically seen the majority of its significant increases. The halving usually marks the start of these bull runs, which usually come to an end when Bitcoin hits its prior peak. Three such cycles, each lasting 12 to 18 months after a halving occurrence, have existed in the history of Bitcoin.

According to the upbeat forecast from Morgan Stanley, a protracted period of bullish price momentum may be facilitated by the special dynamics of Bitcoin’s supply, which are influenced by supply-halving events.

Despite the inherent volatility of the cryptocurrency market, recent trends and historical patterns point to a likely transition from the current crypto winter to a more promising crypto spring.

Investors and fans will be eagerly following Bitcoin’s progress as it takes place, curious to see if the current recovery truly ushers in a prolonged period of development for the market for digital assets.

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