After months of losses, cryptocurrency prices may be approaching a turning point, as some recent developments could mark the beginning of a new bull phase.
Clear Street analyst Owen Lau said in a report on Wednesday that the cryptocurrency market fell about 44% between October 10 and February 28 and may now represent the end of the latest downturn.
Liu’s comments come from Bitcoin It rose 8% in the past 24 hours to just over $73,000.
He noted that President Donald Trump’s intervention on Tuesday in the hard-fought but currently stalled Clarification Act raised the possibility of the bill passing Congress by the end of the summer.
Infrastructure integration is also progressing after Kraken’s banking subsidiary obtained a master account at the Federal Reserve, allowing it direct access to the central bank’s payment system. Liu said the move represents a structural step toward integrating crypto-native institutions into the U.S. financial system.
Institutional participation is also expanding. Morgan Stanley recently amended the filing for a proposed spot Bitcoin ETF to name Coinbase Custody as a joint custodian alongside BNY Mellon, strengthening Coinbase’s (COIN) role in the institutional crypto ecosystem.
At the same time, geopolitical tensions in the Middle East have highlighted the utility of blockchain networks as alternative payment channels during times of financial uncertainty.
Overall, Liu said, these developments could herald a broader shift in the industry.
“The industry may have just hit an inflection point, and we believe this trend is supportive,” he wrote.