Bitcoin moves just as fast as the dotcom bubble in 2000.

American finance website, CNBC reported the currency price movements and the nasdaq composite index in nearly 20 years ago during the dotcom bubble moves like, but from the time line up and crash much faster, Morgan Stanley, according to a study.
In 2000, the nasdaq composite index and now the currency price before in a bear market the most prosperous period of both rose by 250% to 280%, Morgan Stanley said in a research report issued to the customer.
"The price of bitcoin has risen about 15 times faster than the nasdaq composite index." "Said Sheena Shah, a strategist at Morgan Stanley.
The price movements of these assets, and the similar performance of trading volumes, could herald a repeat of the nasdaq's history, Mr Shah said.
It is not new for digital currencies to enter a bear market. Since its inception in 2009, bitcoin has experienced a four-wheel bear market, with the price of bitcoins dropping between 28 and 92 percent, shah said. Currency prices in December to reach peak close to $20000, in February 2018 fell to $7000, which represents the currency prices fell by nearly 70%, CoinDesk figures show.
On average, the price of bitcoin has fallen 45 to 50 percent in every round of bearish trends, like the nasdaq composite index 18 years ago, shah said.
"The nasdaq has experienced five significant declines in the bear market since 2000, with an average drop of 44 per cent." "Said shah.
Trading volume could be another sign. Since December, trading in bitcoin has jumped nearly 300 percent, Mr. Shah said. But bitcoin has seen a decline in trading volumes every time it falls into a bear market.
For both bitcoin and the nasdaq composite index, they will see a drop in trading volumes in the subsequent rally, shah said. "The rise in trading volumes is not a sign that more investors are entering the market, but that investors are rushing out of the market."
Morgan Stanley notes that the volume of bitcoin transactions is not related to the nasdaq composite's trend, but may be "an interesting development trend."
Historically, three major currencies have been used to buy bitcoin: the dollar, renminbi and yen. In the recent bear market, a new type of digital currency called teda has taken a large share of bitcoin transactions.
The founder of teda says there is a dollar of support behind every teda, which means that the market price of teda is one dollar. In theory, teda is more stable than most volatile digital currencies.
"It's not a major financing unit, but more and more investors are using the digital currency to buy other digital currencies," he said. "Shah wrote. "In the next few years, we believe that market focus will increasingly turn to encrypt digital currency across generations between currency trading, and this transaction will only by distributed books, rather than through the banking system."
In January, bloomberg reported that the commodity futures commission had issued a subpoena to Tether, the company that issued the virtual currency. The company is under investigation for suspicions that it has only $2.2 billion in reserves.