Profit-Taking Hits Bitcoin as Market Enters ‘Fall Season’, Morgan Stanley Flags Short-Term Caution
Morgan Stanley has suggested Bitcoin buyers to take earnings as the world’s largest cryptocurrency enters what analysts are calling its “fall season.”
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According to Denny Galindo, an funding strategist at Morgan Stanley Wealth Management, Bitcoin follows a four-year cycle sample, characterised by three years of features adopted by a yr of losses. Speaking on the Crypto Goes Mainstream podcast, Galindo likened the present section to a harvest interval.
“We are within the fall season proper now,” he stated. “Fall is the time for harvest. So, it’s the time you wish to take your features.” Bitcoin dropped under $99,000 on November 5, falling beneath its 365-day shifting common, a transfer that many analysts view as a technical bear market sign.
Bitcoin Faces Pressure Amid Slowing Liquidity
The decline comes as profit-taking and cooling enthusiasm in AI and tech shares weigh on broader danger belongings.
Bitcoin slipped practically 3% to round $103,000 after briefly touching $107,000 earlier within the week. Market analysts at CoinSwitch observe that instant help lies between $100,000 and $102,000, whereas resistance stays close to $110,000.
Liquidity situations have additionally weakened. Market-maker Wintermute reviews that key liquidity sources, together with stablecoins, ETFs, and digital asset treasuries, have reached a plateau.
The slowdown might enhance volatility as merchants unwind leveraged positions. Ethereum fell by over 3.5% to $3,432, whereas main altcoins like Solana, Cardano, and Hyperliquid recorded losses exceeding 8%, dragging the entire crypto market capitalization down 0.6% to $3.52 trillion.
Institutional Adoption Grows Despite Short-Term Risks
Despite the current pullback, Morgan Stanley stays optimistic about Bitcoin’s long-term function as a macro hedge. Michael Cyprys, head of U.S. brokers and asset managers analysis on the agency, famous that “institutional buyers more and more view Bitcoin as digital gold and a hedge towards inflation.”
Spot Bitcoin ETFs now maintain over $137 billion in belongings, whereas Ethereum ETFs account for $22.4 billion, in line with SoSoWorth information.
Meanwhile, corporations like London BTC Company Limited are increasing operations in North America, leveraging renewable power to maintain mining profitability. Analysts say such developments underscore the maturing construction of the crypto market, even as short-term sentiment cools.
Related Reading: Brazil’s Central Bank Introduces Stricter Crypto Regulations To Combat Scams And Fraud
For now, Morgan Stanley’s message is evident, Bitcoin’s “fall season” has begun, making this an opportune second for buyers to safe earnings earlier than potential volatility returns.
Cover picture from ChatGPT, BTCUSD chart from Tradingview
