Morgan Stanley has released a recent report in which it explains the four phases of the crypto market, and in which it makes it clear that there are clear signs of what appears to be the end of the Bitcoin bear market.
in a new report Morgan Stanley has analyzed the cryptocurrency market and has come to the conclusion that the Bitcoin halving, which will take place in April 2024, could put an end to the current bear market.
The report, titled “Will Crypto Spring Ever Come?”, describes the four stages of the historical trading and trading cycle of Bitcoin, which he compared to the four seasons of the year. Currently, the Bitcoin market is in a bear market, characterized by falling cryptocurrency prices, investor losses, and overall bearish and negative sentiment.
However, Morgan Stanley believes that the Bitcoin halving could boost the price of the cryptocurrency and end the bear market. The halving is an event that occurs approximately every four years and reduces the block reward received by network miners by half. This means that the supply of Bitcoin is reduced, which could lead to an increase in demand and ultimately a rise in price.
Let us remember that Morgan Stanley is a multinational financial services company based in New York. It is one of the largest financial services companies in the world, with operations in more than 40 countries. Founded in 1935 by Henry Sturgis Morgan, Dean Witter and Harold Stanley, the company has grown significantly since then and is now a global player in the financial market. Currently, it has a market capitalization of more than $175 billion and has had large participations in the crypto world, especially as an institutional custodian of cryptocurrencies and advisor.
Historical movements
Morgan Stanley notes that Bitcoin halvings have historically had a major impact on the cryptocurrency's price. The first halving, which took place in 2012, led to a Bitcoin price increase from $2 to $32 in the following year. The second halving, which took place in 2016, led to a Bitcoin price increase from $600 to $20.000 in the following two years.
The investment bank believes that the upcoming halving could have a similar impact on the price of Bitcoin. Morgan Stanley estimates that the price of Bitcoin could reach $100.000 within two years of the 2024 halving.
Of course, there is no guarantee that the Bitcoin halving will end the current bear market. However, the Morgan Stanley report suggests that this event could be a strong catalyst for an increase in the price of the cryptocurrency.
Impact of the halving on the price of Bitcoin
The Bitcoin halving has a direct impact on the price of the cryptocurrency because it reduces the available supply. By halving the block reward, the halving makes it more difficult for miners to obtain Bitcoin, which could lead to an increase in demand.
Bitcoin demand may increase for several reasons. First, investors may be attracted by Bitcoin's scarcity, which could make the cryptocurrency more valuable. Second, financial institutions could begin to adopt Bitcoin, which could increase demand for the cryptocurrency from institutional investors.
Why does Morgan Stanley believe the halving will end the bear market?
Morgan Stanley believes that the Bitcoin halving will end the current bear market for several reasons. First, the investment bank assumes that the halving could drive the price of Bitcoin to record levels. If the price of Bitcoin reaches $100.000, it could attract new investors to the market, which could contribute to an increase in demand and ultimately an end to the bear market.
Secondly, Morgan Stanley believes that the halving could generate optimism in the cryptocurrency market. If the halving leads to a rise in Bitcoin price, it could give investors confidence that the market is ready for a new bull cycle.
Of course, there is no guarantee that the Bitcoin halving will end the current bear market. However, the Morgan Stanley report suggests that this event could be a catalyst for a trend change in the cryptocurrency market.
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