What's the Only Thing Worse Than a Goldman Sachs Trade Call?
So what is the only thing worse than a Goldman Sachs trade call? That would be taking trading advice from Morgan Stanley of course!
Yes, our old friends at Morgan Stanley are back with a note to clients, featuring totally unbiased and most definitely trustworthy advice on Bitcoin. This is of course the same Morgan Stanley that in 2017 had their CEO call Bitcoin a Ponzi, only for them to be the single biggest buyer at the bottom they subsequently created.
You can take a look at the original CNBC article featuring quotes from the note yourself by clicking that link, but I've just gotta add my 2 cents. Fucking lol, I can't help myself.
So the well known and highly respected cryptocurrency strategist, Sheena Shah, said that Bitcoin is behaving a lot like how the Nasdaq did during the dot-com bubble nearly 20 years ago. But the kicker was adding that the timeline is unfolding much faster.
So actually, it's nothing like the dot-com bubble... Come on, can you really compare 2 things an then say that they're actually nothing alike? Well you can if you're one of the investment banks, oozing vested interests.
Shah went on to say that the Nasdaq in 2000 and modern-day bitcoin both rallied 250 to 280 percent in their most "exuberant" periods ahead of bear markets. Just that the bitcoin rally was around 15x the speed.
Hmm, close but not really close percentages and speeds that are only a slight 15 times out from each other. Comparable? LOL!
She has even compared Bitcoin prices to that of the Nasdaq to make her bearish case, highlighting that on average, Bitcoin prices have lost 45 percent to 50 percent of their value in each bearish wave. "The Nasdaq's bear market from 2000 had five price declines, averaging a surprisingly similar amount of 44 percent," Shah went on.
Bitcoin retraces close to the 50% fibs just like the Nasdaq, so they must be the same? Those and every other market, every other day. Oh yeah, and how's the Nasdaq gone since? No, let's just gloss over that.
Her next so called red flag was the fact that trading volumes fell during each short term rally. A classic bear market sign.
But what Shah failed to acknowledge, was that Bitcoin is in fact still in a higher time frame bullish trend and this is actually healthy countertrend price action. But why let facts like that get in the way of a good bearish, note designed to manipulate the market for their benefit. Again.
"Rising trade volumes are thus not an indication of more investor activity but instead a rush to get out," said Shah. Oh cool, she's a trader afterall? Yeah, no.
Shah did however end with the most common sense piece of the note which I wanted to properly highlight here.
"The coin USDT is not a major funding unit but its increasing use is an interesting development. Over the coming years, we think that market focus could turn increasingly towards cross trades between cryptocurrencies/tokens, which would transact via distributed ledgers only and not via the banking system."
Oh hello. Morgan Stanley, now we're talking some common sense. Hilariously, it's that you're going to be fucked in the long run.
Have a fantastic Tuesday and as always, the best of probabilities to you.
Peace ✌🏻.
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