Bitcoin in State of the Bear Market, entitles by analyst at Morgan Stanley
Analyst at Morgan Stanley claimed that the market is in the bear phase and here we should remain calm and carry on.
At the time of writing this article, the price of Bitcoin is $38,300 and this price is at no profit no loss situation over last 24 hours. This price is 44% low than its all-time high. In this situation, many experts believe that Bitcoin may take a U-turn to move toward the pump, while few people don’t believe that Bitcoin may again go upwards soon.
Sheena Shah, analyst of Morgan Stanley, noted that Bitcoin is standing at approximately 50% low with historical usual basis and this phase is bearish for this market. Analyst entitled this research on Bitcoin “State of the Bear Market.”
Shah said that in the current situation we can not tell the exact price of crypto assets and the situation is working based on speculation and availability of U.S. dollars and central bank liquidity.
Analysts also pointed out that if Bitcoin will touch the $28,000 trade price then in that situation it will be the low value of last year and it may further face more downfall also. While we may consider $45,000 against the current downtrend.
The research note also pointed out that Bitcoin faced 15 times corrections since its birth, in 2019. And the past correction situation for Bitcoin was similar to the current situation.
“Until bitcoin is commonly used as a currency for goods and services transactions (in the crypto or non-crypto world), it is hard to value bitcoin on fundamental demand beyond the asset speculation,” Morgan Stanley said.
According to analysts, we are in the middle of a big fear, where more correction can take place. But here crypto investors should be ready and also needed to wear more patient against this situation. Besides this, research also noted that for better stability we need to see a bullish trend because central bank liquidity is removed.
To do speculation, analysts noted that, we need to focus on Stabelcoins regulation, non-fungible collectibles and other regulations debates and hearing, which are coming in the next few months.
Recently US officials annnouced that next stablecoins based hearing will held on 14 February where many crypto players will attend as witnesses of the hearing and after that hearing another hearing will take place for same matter.
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