Sheena Shah, a strategist at Morgan Stanley (NYSE:MS), has pointed out in a note to customers that Bitcoin’s price shows striking similarities with the Nasdaq index during its dot-com bubble period, but the cryptocurrency has moved 15 times faster.
She compared a chart of the Nasdaq index from 1994 to 2002 with Bitcoin’s price in the last year. The lines move in parallel until a certain point where we can see that Bitcoin trends a little higher. By this logic, the price of the largest cryptocurrency should soon tumble.
Steven Russolillo from the Wall Street Journal shared the chart via a tweet.
However, not everyone agrees with the accuracy and relevance of this comparison. Some social media users note that the dual axes might misrepresent the data.
Moreover, people said this chart should be perceived as a bullish sign for Bitcoin in the medium term.
“Following this theory it suggests that by extending the chart (NASDAQ) up until today, bitcoin would reach around 30’000 by next march,” one Twitter user commented.
Indeed, we can see that Nasdaq’s 2000 peak is not the all-time high – the record was set quite recently.
In light of that, Morgan Stanley should send a bullish signal on Bitcoin rather than a bearish one. It suggests the observation made in the Monday note to clients is quite irrelevant.
Last year, the CEO of Morgan Stanley said that Bitcoin resembled a bubble, but it would not unfold overnight.
“Something that goes up 700 percent in a year — it's by definition speculative. So anybody who thinks they're buying something that it's a stable investment is deluding themselves,” he said then.
According to data from Coinmarketcap, Bitcoin is now trading at $9,025 at the time of writing, up 6.63% in the last 24 hours and 0.07% for the past seven days.
All eyes are now on the G20 meeting of finance ministers and central bank representatives, who have gathered in Argentina.
This article appeared first on Cryptovest
