Cryptocurrency prices may be approaching a turning point after months of losses, as several recent developments could mark the start of a new bullish phase.
In a note on Wednesday, Clear Street analyst Owen Lau said the roughly 44% drop in crypto markets between Oct. 10 and Feb. 28 may now represent the end of the last recession.
Lau’s comments came like bitcoin. it rose 8% in the last 24 hours, standing just above $73,000.
He noted U.S. President Donald Trump’s Tuesday intervention on the hotly contested, but currently stalled, CLARITY Act, which increases the chances of the law passing Congress by the end of the summer.
Infrastructure integration is also moving forward after Kraken’s banking subsidiary received a master account from the Federal Reserve, allowing it direct access to the central bank’s payments system. Lau said the move represents a structural step toward the integration of crypto-native institutions into the US financial system.
Institutional participation is also increasing. Morgan Stanley recently amended a filing for a proposed bitcoin spot ETF to name Coinbase Custody as a co-custodian alongside Bank of New York Mellon, bolstering Coinbase’s (COIN) role in the institutional crypto ecosystem.
At the same time, geopolitical tensions in the Middle East have highlighted the usefulness of blockchain networks as alternative payment avenues during periods of financial disruption.
Taken together, Lau said the developments could signal a broader shift for the industry.
“The industry may reach an inflection point and we believe this trend has strength,” he wrote.
