Bitcoin’s 50% Correction Is No Big Deal, Says Morgan Stanley
Bitcoin has experienced 15 corrections since its inception in 2009. The asset’s current decline all the way down from its all time high of $69K is within its historical norms, say American multinational investment bank Morgan Stanley.
The dominant crypto has lost almost 50% of its value since November 2021, but such a correction is normal and nothing unusual, the head of Morgan Stanley’s crypto analyst team, Sheena Shah remarked in her report.
According to her, the crypto market should keep an eye on the critical BTC price levels of $28,000 and $45,000 which could act as key support and resistance levels. Should Bitcoin break one of these levels, it would consequently lead to further erosion, or, on the other side of the spectrum, a reversal of fortunes
Morgan Stanley’s Lead Crypto Analyst claims that cryptocurrency investors may need to practice patience if, in the end, the market happens to be in the middle of risk market correction. “Alternatively, leverage in the crypto market would need to rise for a bullish trend to begin as central bank liquidity is removed,” she stated.
Morgan Stanley has indirect exposure to bitcoin through the holdings of over 3.6 million shares in Grayscale Bitcoin Trust (GBTC) obtained at the end of Q3 in 2021.
The world’s biggest bitcoin fund, Grayscale Bitcoin Trust (GBTC), is operating at 25% discount levels on the first day of February. This is one of the lowest percentages since February of the previous year when the GBTC share price first dropped below the price of bitcoin.
The 50% market correction may seem severe for the financial markets, but the same is not the case for bitcoin, agrees crypto analyst and lead of prominent YouTube channel ‘Invest Answers.’
According to him, the average bitcoin correction is around 57% and lasts for 89 days, although the average period of recovery could take up to as many as 257 days. However, the gains generated for bitcoin after a correction climb up to 362% on average.
Read more: https://dailycoin.com/bitcoin-correction-normal-morgan-stanley/
Text source: DailyCoin.com
