U.S. investment bank %MorganStanley ($MS) says that the %Cryptocurrency winter that sent prices sharply lower last year is now likely over.
Specifically, Morgan Stanley’s Wealth Management unit states in a post on its website that the bear market in digital coins and tokens has likely run its course.
“Based on current data, signs indicate that crypto winter may be in the past and that crypto spring is likely on the horizon,” states the bank in its online post.
Morgan Stanley notes that the bottom in Bitcoin’s (BTC) price during previous downturns has occurred 12 to 14 months after a previous peak.
%Bitcoin, the largest crypto by market capitalization, reached an all-time high of $68,000 U.S. in November 2021 and bottomed at $16,000 U.S. in December 2022, says Morgan Stanley.
“A 50% increase in price from Bitcoin’s low is typically a good sign that the trough has been achieved,” says Morgan Stanley analyst Denny Galindo, who authored the online post.
He also points to the depth of the decline in Bitcoin’s price during the crypto market downturn of 2022. Previous price declines were about 83% off their respective highs. Bitcoin dropped nearly 77% to bottom at $16,000 U.S. at the end of last year.
Bitcoin’s price has risen about 70% year-to-date and is up 77% from last year’s low point.
Galindo writes that Bitcoin should retest its previous all-time high of $68,000 U.S. within the coming 12 to 18 months and could run even higher.