The group of analysts of the American bank holding Morgan Stanley published the new report in which parallels between recent rise of bitcoin and a boom of “dot-coms” was shown, the event in the late nineties.
According to analysts, now the movement of a rate of Bitcoin almost completely repeats Nasdaq Composite Index in anticipation of and after 2000, but 15 times faster. Then the index grew by 278% in 519 days and reached a maximum in March of the 2000th. In return, Bitcoin jumped up for 248% in only 35 days — up to a record mark of $19 511 last December.
Besides, it is noted that since the end of the last year Bitcoin endured three waves of falling when its price every time fell by 45–50% before there was a rebound. At the same time, Nasdaq, after 2000, have experienced five sharp falling which averaged similar 44%.
The bear market isn’t something new to the first decentralized digital currency. So, after records of the end of last year in February the price of Bitcoin dropped by 70%, and “there is nothing unusual in this”, added to Morgan Stanley. At the same time, since December, 2017 the trading volumes of Bitcoin have grown almost by 300%.
“This growth of the trading volume isn’t an indicator of bigger activity of investors, and speaks rather about urgent attempt to leave.”
— the strategist of Morgan Stanley commented.