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Citing historical data, Morgan Stanley says the significant drop in Bitcoin’s price is nothing to be surprised about. In a recent research note sent to investors, the financial services firm highlighted two key price levels ($28,000 and $45,000) that will determine where the market is headed for.
As per the note, investors can expect more dump if bitcoin’s price falls below $28,000. However, the bulls can expect to regain dominance if the price exceeds $45,000.
“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 explained.
Since its inception in 2009, Bitcoin has suffered 15 price corrections, and the current price level is nothing short of what to expect in a typical bear market.