Cryptocurrency prices could 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 published on Wednesday, Clear Street analyst Owen Lau said the roughly 44% drop in crypto markets between October 10 and February 28 could now represent the end of the latest downturn.
Lau’s comments came in the form of bitcoin rose 8% in the last 24 hours, rising to just above $73,000.
He noted U.S. President Donald Trump’s intervention Tuesday on the hotly contested but currently stalled CLARITY Act as increasing the chances that the law will pass Congress by the end of the summer.
Infrastructure integration is also progressing after Kraken’s banking subsidiary received a master account from the Federal Reserve, allowing it direct access to the central bank’s payment system. Lau said the move represents a structural step toward integrating crypto-native institutions into the US financial system.
Institutional participation is also expanding. 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, strengthening 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 methods during times of financial disruption.
Overall, Lau said these developments could signal a broader shift for the industry.
“The industry may well be reaching an inflection point, and we believe this trend has weight,” he wrote.
