In a research report released on Thursday, Morgan Stanley (MS) stated that over a year into the "bitcoin bear market," the majority of investors who purchased the cryptocurrency in 2021 are suffering significant losses and appear to be waiting for rallies to unwind their positions.
Despite increased volatility in other financial markets, the U.S. dollar price range for Bitcoin (BTC) has been the tightest since late 2020. According to the research, this stability "indicates that some traders are buying dips below $18,500 to avoid BTC from sliding considerably below its 2017 previous cycle high."
According to the report, a record 78% of bitcoins have not been utilized in transactions during the past six months, and the percentage is rising. That suggests investors who acquired bitcoin more than six months ago are holding onto their shares, some perhaps in anticipation of a price increase, according to analyst Sheena Shah.