Morgan Stanley: Bitcoin price dynamics eerily similar to NASDAQ before Y2K crash

The analyst from Morgan Stanley has compared NASDAQ Composite Index dynamics in 2000s to the current big-scale graphic of Bitcoin price and found out that the two resemble each other very much, although Bitcoin’s evolution is happening 15 faster. Sheena Shah also thinks that the current bearish trend may not end as easily as previous ones have finished before.

The seeming disadvantage of this approach is that it pre-determines the outcome of the situation based on other situation which has no connection to digital currencies. Sudden events on the market can accelerate the growth or the fall any moment, and dotcoms certainly did not have such a vibrant news background with some governments totally forbidding related investments and others allowing key phenomenon components to compete with traditional market. This might also explain the speed difference. Anyway, the resemblance is striking and worth taking into consideration.

Morgan Stanley is an investment and consulting company thanks to which we can compare the circulating amounts of money in the networks of Bitcoin and VISA. Based on the data provided by the older reports of this organization, one can imagine the daily amount of money circulating in the environment of Bitcoin as the Hollywood blockbuster budget, while the same parameter for VISA almost equals the annual budget of NASA.

Image courtesy of Reuters