The well-known Wall Street bank Morgan Stanley is promoting hope in the cryptocurrency space by predicting the end of the “crypto winter” and the start of a new bullish cycle driven by Bitcoin’s impending halving event. The wealth management branch of the bank explores the four-year cryptocurrency cycle and the significant impact of Bitcoin’s halving events on the crypto environment in a thorough analysis titled “Will Crypto Spring Ever Come?”

Recognizing the Crypto Cycle’s Four Phases

The four-year cryptocurrency cycle is fascinatingly compared in Morgan Stanley’s analysis to the varying seasons, offering investors and enthusiasts a useful comparison:

Spring Phase: This phase, which is distinguished by the half of the rate at which new Bitcoins are created, has traditionally seen large price increases as demand is sparked by scarcity. Usually, it peaks when Bitcoin breaks through its prior all-time high, causing a frenzy in the market.

Summer Phase: As Bitcoin approaches its cyclical trough, miners withdraw from the market owing to financial losses, which is a crucial indicator. This stage is tracked by “bitcoin difficulty,” which indicates how simple mining is. Approaching the trough is indicated by decreasing difficulty.

Things to Look Out for During the Crypto Seasons

Morgan Stanley identifies the following key measures and indicators in its analysis that are crucial for monitoring the crypto seasons:

Bitcoin Price-to-Thermocap Multiple: This indicator calculates the entire amount of money invested in the cryptocurrency from its launch. A market top is suggested by a larger price-to-thermocap ratio, whereas a lower ratio denotes a trough.

Price movement Significance: Morgan Stanley highlights how price movement might indicate whether a new cycle is beginning or ending. A significant 50% increase in the price of Bitcoin from its lowest point typically denotes a trough.

Crypto Spring Is Here: A Positive Prognosis

The cryptocurrency community is looking forward to the next Bitcoin halving event, anticipating that it will spark a new phase of positive momentum, especially in light of Morgan Stanley’s research, which is a beacon of hope. The market’s transition from winter to spring might bring about a big change in the cryptocurrency environment, opening up new doors and creating excitement for investors.