"Wow is it true? The crypto market should be green lately.”
Morgan Stanley, the giant investment banking firm revealed that the upcoming Bitcoin (BTC) halving event in six months may be a sign for the cryptocurrency market to bounce back.
This is because "crypto winter" may be over, Morgan Stanley commented, adding that the phase when investors start selling their digital asset holdings and then scare off new investors usually lasts 13 months before prices climb back up.
There is no denying that the price of BTC will slowly recover from its drastic fall, but it should be noted that investor interest in the digital asset will still remain low.
However, Morgan Stanley believes the halving is directly related to the crypto cycle of the past four years as limiting the supply of new BTC could send the price higher.
Even so, some analysts believe that BTC's rise following the halving event is purely coincidental as the price of the digital asset is often driven by macroeconomic factors.
According to author Denny Galindo, the timing and output of BTC currently trading at $30,521 is worth considering when trying to signal when the crypto market's bearish phase will end.
In context, a BTC halving is when the rate of production of the digital asset's supply is cut in half every four years and it will make it twice as difficult to mine.
