How the Bitcoin Bubble Is Mirroring the Dot-Com One, Only Happening 15 Times Faster

March 20, 2018, 3:06 PM UTC

If the rise and fall of Bitcoin seems familiar, Morgan Stanley wants to assure you that it is, though you saw things play out a lot slower originally.

The investment firm, in a note, said the cryptocurrency’s price chart is largely mirroring that of the Nasdaq composite index during the dot-com bubble. Only this time, things are moving 15 times faster than they did in the mid-90s and early 2000s.

How similar are things, exactly? Since its creation, Bitcoin has seen four bear waves, where prices have dropped 45-50%, typically rebounding an average of 47% afterward. Nasdaq, starting in 2000, had five of those waves, averaging 44% declines, followed by 40% rebounds.

Trading volume patterns are also eerily similar.

Of course, as any broker will tell you, past performance is not indicative of future behavior. And while Nasdaq has rallied nicely from its low in 2002 (increasing six-fold), that’s no guarantee Bitcoin will do the same.

But try telling that to crypto enthusiasts.