Bitcoin is easily the most provocative and polarizing asset in the world. People either love it or hate it. Bitcoin has posted insane gains in the last few years – but right now the skeptics are laughing with Bitcoin in a deep correction down 65% from the 52-week high.
I’m bullish on crypto – the technology is amazing and I believe the industry is in the early stages of a long-term growth. Morgan Stanley just released a research report showing that 70% declines in Bitcoin are ‘normal’ and usually precede new bull markets. Here’s some more from Forbes. Enjoy!
In last week’s Investor Alert, our investment team shared with you a report from Morgan Stanley that says Bitcoin’s price decline since December mimics the NASDAQ tech bubble in the late 1990s. This isn’t earth-shattering news in and of itself. The main difference is that the bitcoin rout happened at 15 times the rate as the tech bubble.
Morgan Stanley has some good news for Bitcoin bulls, however: The 70 percent decline is “nothing out of the ordinary,” and what’s more, such corrections “have historically preceded rallies.” Just as the NASDAQ gained back much of what it lost in the subsequent years—before the financial crisis pared losses even further—bitcoin could similarly be ready to stage a strong recovery.
One research firm, in fact, believes Bitcoin and other digital coins, or “alt-coins,” have likely found a bottom. New York-based Fundstrat, headed by strategist Thomas Lee, issued a statement to investors last week saying that, though a crypto currency bull market isn’t necessarily underway, the worst of the pain could be “largely over.”
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Disclaimer: This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading.