Morgan Stanley's investment strategist, Denny Galindo, has advised investors to consider taking profits on Bitcoin as it enters the 'autumn' phase of its four-year cycle. Galindo warns that the market may soon transition into a 'winter' phase, characterized by potential price declines. This caution comes as Bitcoin recently fell below its 365-day moving average, a technical indicator often seen as a bear market signal.
Despite the current market conditions, Morgan Stanley's head of research, Michael Cyprys, notes that institutional investors continue to view Bitcoin as a hedge against inflation. The introduction of ETFs has lowered the investment threshold, with US spot Bitcoin ETFs now holding over $137 billion in assets, and Ethereum ETFs reaching $22.4 billion. However, liquidity inflows from stablecoins and ETFs have stagnated, adding to the cautious outlook.
Morgan Stanley Advises Bitcoin Profit-Taking Amid Market Cycle Shift
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