Morgan Stanley Says It’s Harvest Time As Bitcoin Enters ‘fall’ Season
Morgan Stanley’s Denny Galindo likens Bitcoin’s cycle to the seasons, warning that the market’s “fall” phase is a time to secure gains before a downturn.
Morgan Stanley strategists say the crypto market has entered the “fall season” in Bitcoin's four-year cycle, advising investors to harvest their gains before the potential onset of winter.
In a podcast episode titled Crypto Goes Mainstream, Denny Galindo, an investment strategist at Morgan Stanley Wealth Management, said that historical data indicates a consistent three-up, one-down rhythm in Bitcoin's price cycles. Galindo urged investors to take profits in preparation for a crypto winter.
“We are in the fall season right now,” he said. “Fall is the time for harvest. So, it’s the time you want to take your gains. But the debate is how long this fall will last and when the next winter will start.”
The “harvest” analogy shows that major Wall Street executives are recognizing Bitcoin's market rhythm with a cyclical investment framework, similar to commodities or liquidity-driven macro cycles.
On Nov. 5, Bitcoin (BTC) fell below $99,000, breaching a key macro indicator and reigniting debate over the market’s state. This put BTC below its 365-day moving average, according to CryptoQuant head of research Julio Moreno.
Bitcoin's 365-day moving average is a technical indicator that generally indicates the overall direction of the market. Analysts say that the metric is one of the most important indicators of sentiment. The drop was widely viewed as a strong bearish signal.
Bitrue research analyst Andri Fauzan Adziima previously told Cointelegraph that the dip “officially marked a technical bear market.”
Apart from the Bitcoin dip last week, crypto market-maker Wintermute said key drivers for the market’s liquidity have stalled.
In a blog post, Wintermute said that stablecoins, ETFs and digital asset treasuries (DATs) have been the major sources of crypto liquidity. The company said liquidity inflows from all three components have reached a plateau.
Source: CoinTelegraph
