Morgan Stanley released a recent report detailing the four stages of the cryptocurrency market, stating that there are clear signs of what appears to be the end of the Bitcoin bear market.
In new a report Morgan Stanley analyzed the cryptocurrency market and came to the conclusion that the Bitcoin halving, which will happen in April 2024, could put an end to the current bear market.
The report is entitled “Will crypto spring come?”Describes the four stages of Bitcoin’s historical trading and marketing cycle, which he compares to the four seasons of the year. Currently, the Bitcoin market is going through a bear market, characterized by falling cryptocurrency prices, investor losses, and overall bearish and negative sentiment.
However, Morgan Stanley believes that a Bitcoin halving could boost the cryptocurrency’s price and end the bear market. Halving is an event that occurs approximately every four years and reduces the block reward received by miners in the network by half. This means a reduced supply of Bitcoin, which could lead to increased demand and ultimately a higher price.
Let’s remember that Morgan Stanley is a multinational financial services company headquartered in New York. It is one of the largest financial services companies in the world, operating 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 over $175 billion, and has significant involvements in the world of cryptocurrencies, especially as an institutional cryptocurrency custodian and advisor.
Morgan Stanley notes that historically, Bitcoin halvings have had a significant impact on the cryptocurrency’s price. The first halving, which occurred in 2012, caused the price of Bitcoin to rise from $2 to $32 the following year. The second halving, which occurred in 2016, caused the price of Bitcoin to rise from $600 to $20,000 in the following two years.
The investment bank believes the next halving could have a similar impact on Bitcoin’s price. Morgan Stanley estimates that Bitcoin could reach $100,000 within two years of the halving in 2024.
Of course, there is no guarantee that the Bitcoin halving will end the current bear market. However, a Morgan Stanley report indicates that this event could be a strong catalyst for an increase in the price of the cryptocurrency.
The impact of the halving on the price of Bitcoin
The Bitcoin halving directly affects the price of the cryptocurrency because it reduces the available supply. By halving the block reward, the halving makes it harder for miners to obtain Bitcoin, which could lead to increased demand.
Demand for Bitcoin may increase for several reasons. First, investors may be attracted to Bitcoin’s scarcity, which could make the cryptocurrency more valuable. Second, financial institutions could start adopting Bitcoin, which could increase demand for the cryptocurrency by institutional investors.
Why does Morgan Stanley think 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 a halving could push the price of Bitcoin to record levels. If the price of Bitcoin reaches $100,000, it may attract new investors to the market, which could contribute to increased demand and ultimately end the bear market.
Secondly, Morgan Stanley believes that the halving could generate optimism in the cryptocurrency market. If the halving causes the price of Bitcoin to rise, 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, a Morgan Stanley report indicates that this event could be a catalyst for a change in trend in the cryptocurrency market.
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