Crypto prices may be approaching a turning point after months of losses, as several recent developments could mark the start of a new bull phase.
In a note on Wednesday, Clear Street analyst Owen Lau said the roughly 44% decline in crypto markets between October 10 and February 28 may now represent the end of the recent slump.
Lau’s comments came as bitcoin up 8% over the past 24 hours, moving to just over $73,000.
He noted U.S. President Donald Trump’s intervention on Tuesday over the hard-fought, but currently stalled, CLARITY Act raised the odds that the law will win congressional passage before the end of the summer.
Infrastructure integration is also advancing after Kraken’s banking subsidiary received a main account at the Federal Reserve, which gives it direct access to the central bank’s payment system. Lau said the move represents a structural step towards integrating crypto-native institutions into the US financial system.
Institutional participation is also expanding. Morgan Stanley recently amended a filing for a proposed spot bitcoin ETF to name Coinbase Custody as a co-custodian alongside the Bank of New York Mellon, reinforcing 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 rails during periods of economic disruption.
Taken together, Lau said the developments could signal a broader shift for the industry.
“The industry may have just hit a tipping point and we believe this race has legs,” he wrote.
