Wall Street bank Morgan Stanley has directly likened Bitcoin ‘weakness’ to that experienced during the Dotcom boom in the early 2000s.
Pointing directly to the performance of Nasdaq, which matched Bitcoin’s highs and could also fortell its downfall, Sheena Shah, market strategist for Morgan Stanley, said in a research report (via CNBC): “Bitcoin price weakness has similarities to the Nasdaq in 2000, just occuring at around 15 times the speed.
“The Nasdaq’s bear market from 2000 had five price declines, averaging a surprisingly similar amount of 44 percent… The follow-up rally for both bitcoin and the Nasdaq always saw falling trading volumes. Rising trade volumes are thus not an indication of more investor activity but instead a rush to get out.”
Visa boss Vasant Prabhu recently added to those calling Bitcoin a ‘bubble’, and expressed concern over how easy it made transferring “dirty money” while avoiding the banking system.