Record Number of Bitcoin Unutilized in Past 6 Months:- Morgan Stanley Report

Bitcoin showed a hike in its trading price in the last few days and is currently trading above $20,000.

In its research report on Thursday, Morgan Stanley noted in its research report almost a year into the “Bitcoin Bear Market,” most investors buying the cryptocurrency in 2021 are facing huge losses and are waiting for rallies to clear their positions to close.

Nevertheless, with extreme volatility in other financial markets, Bitcoin (BTC) has traded in the tightest USD range since the end of 2020. The report added that this stability “suggests that some traders are holding off on downside losses below $18,500 to prevent BTC from falling below its previous cycle highs of 2017.”

According to the report, a record 78% of bitcoin transactions have gone unused in the past six months, and this level is rising.

Sheena Shah an analyst noted that “investors who bought or received bitcoin longer than six months ago are holding on to their positions, with some likely waiting for a recovery in price.”

The note also underlined that “The calculation recommends that the average breakeven price is slightly above $22,300 for the remaining 22% of bitcoin held by short-term investors.”

Bitcoin BTC’s price is maintaining its higher price sustainability above $20K. This struggle was really difficult for bulls to flip the ideological round level of $20,000 into an immediate support level. For over the past 40 days, BTC price propped lower this key level, and bulls sold-out digital assets multiple times amid this.

The bank also noted the trading volume is constantly decreasing on several crypto exchanges excluding Binance which downgraded BTC trading cost to zero at the beginning of the second quarter of 2022 to grow market share. The price of bitcoin has remained “astonishingly stable” since this change, raising the possibility that price stabilization was being “supported by traders on Binance taking advantage of zero fees and making short-term purchases.”

The note added that Ether (ETH) is now tracking the equity markets more than Bitcoin. Because of BTC’s relative stability, some investors may ask whether Ethereum’s move to proof-of-stake (PoS) has “changed the dynamics of business” for bitcoin, as the bitcoin blockchain limits access to certain market participants. the way Ethereum does not The transition, known as the merge, was the first of five upgradations planned for the Ethereum blockchain and included a switch to a more energy-efficient consensus mechanism.

MS(Morgan Stanley) highlights that the institutional demands of cryptocurrency depend on price volatility. The firm also added that “unless there is material upward price volatility it may be difficult to see that real demand pick up materially.”

According to data from CoinMarketCap while framing this article Bitcoin is trading at $20,716.78 with a 24-hour trading volume of $34,318,571,506.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing