“Altcoin Season Begins: Morgan Stanley Predicts End of Bitcoin Rally”

Investing.com – The recent movement in the cryptocurrency market suggests that the altcoin season has begun, which may mean that we should not expect further growth, analysts say.

“Altcoin season” refers to the shift in investors’ attention to smaller, newer cryptocurrencies that supposedly have huge bullish potential.

“Speculative activity has returned to certain areas of the cryptocurrency market,” the note says. Morgan Stanley . “The number of new cryptocurrencies created and listed on the exchange has doubled in the last month, a trend that has often seen near the market peak since 2020,” the bank added.

Indeed, historical data shows that bitcoin price peaks, both minor and major, coincide with the rise of speculative ICO tokens, the bank said, highlighting April and November 2021 and March and August 2022.

In addition, the bank noted that throughout 2021, the price of bitcoin had an inverse relationship with the rate of placement of new cryptocurrencies.

“This tells us that token creators are looking to monetize the recent price-driven speculative demand, but the increase in token issuance is facing a market that will dry up soon,” MS explained.

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