Almost a year into a “bitcoin bear market,” Morgan Stanley (MS) said in a research report on Thursday that most investors who bought cryptocurrencies in 2021 will face heavy losses. It appears to be waiting for a rally to close positions.
Bitcoin (BTC) is Trading in the tightest US dollar range From the second half of 2020, this stability is expected to continue, despite increased volatility in other financial markets. , suggesting that we are buying down below ,” the report said.
According to the report, 78% of Bitcoin has not been used for transactions in the last six months, and that level is increasing. This means that investors who bought or received bitcoin more than six months ago are still holding positions, with some investors likely waiting for the price to recover, Ana said. Sheena Shah of The List writes.
For the remaining 22% of bitcoin held by short-term investors, the average breakeven price is estimated to be just over $22,300, the memo said.
Banks say trading volumes are down on most exchanges except Binance. BTC transaction fees reduced to zero In July to expand market share. Bitcoin price Since the change, the price has been “surprisingly stable,” raising the possibility that price stability was “assisted by Binance traders making short-term purchases using zero fees.”
Ether (ETH) currently tracks the stock market more than Bitcoin, the memo says. BTC’s relative stability has led some investors to believe that Ethereum Proof of Stake (PoS) has “changed the trading dynamics” of Bitcoin. This is because the Bitcoin blockchain does not restrict access to specific market participants like Ethereum does today.migration known as mergeis the first of five planned upgrades for the Ethereum blockchain, A more energy-efficient consensus mechanism.
Morgan Stanley says institutional demand for cryptocurrencies is driven by price volatility. Traditional financial firms have increasingly introduced cryptocurrency products to meet customer demand, but given recent exchange-traded product (ETP) flow and volume trends, “price volatility It may be difficult to see a significant recovery in actual demand unless it rises significantly,” the note added.
read more: Morgan Stanley Says Crypto Ecosystem Is Increasingly Decentralized
