Morgan Stanley advises crypto investors to lock in profits

A strategist speaking on the Crypto Goes Mainstream podcast said that, based on his observations, since 2009 the cryptocurrency market has followed a strict four-year price cycle.

“Typically, three years of crypto market growth are followed by one year of decline, with drawdowns of up to 80%. The rhythm of price cycles can roughly be divided into seasons: spring, summer, autumn, and winter. Right now, the crypto market is entering autumn, which may last about a year. This is the period when investors are advised to lock in their profits to avoid losses during the coming winter,” said Gallindo.

Michael Cyprys, Head of Morgan Stanley Research, noted that Bitcoin remains the flagship asset due to its liquidity and regulatory clarity. However, the firm’s analysts recommend that investors reduce their overall cryptocurrency exposure to 2–3% of their portfolio — or fully exit crypto positions to secure profits.

According to Morgan Stanley experts, cryptocurrencies such as Bitcoin can currently serve as a hedge against inflation or a diversification tool, but crypto assets should not dominate an investment portfolio.

Earlier, Morgan Stanley, which manages around $8 trillion in assets, announced that starting from the second half of October, all categories of clients will gain access to cryptocurrency exchange-traded funds (ETFs).

See also: "CryptoQuant analysts noticed a change in the Ethereum market situation"

#Morgan Stanley #Investment

Share: