on the crypto
Mobius, co-founder of Mobius Capital Partners and a major investor, spoke about this relationship in an interview with Bloomberg.
“Cryptocurrencies are a measure of investor sentiment, Bitcoin falls, the next day the Dow Jones [Industrial Average] falls. This is the pattern you get. This shows that bitcoin is a leading indicator ”.
Mobius' remarks come at a time when the cryptocurrency market is experiencing a major slump. The overall valuation of the cryptocurrency market is now $ 946 billion, a staggering drop from the November valuation of more than $ 3T. At the time of writing, Bitcoin was trading at $ 20.500, down more than 70% from November's all-time high (nearly $ 70.000). Most other cryptocurrencies mirrored its downward trend, hence the decline in market cap.
Bitcoin dipped below the critical $ 20K level on Saturday, dropping as low as $ 17K. While the digital asset has recovered to trade above $ 20K, the fact that it has not moved significantly higher from that level is a point of concern for many.
Based on historical trends, several analysts argue that Bitcoin could still trade at $ 13.000. Less optimists, like China, have warned that BTC is heading for the grave. The country still has an absolute ban on cryptocurrencies, which was tightened after the implosion of Earth.
Some institutional and retail investors are still investing money in cryptocurrencies, Mobius continued. The moment they stop due to a sharp drop in prices, "it's time to start buying stocks."
Just like the cryptocurrency market, US stocks also suffered a heavy bleeding. The trigger was the Fed's hike in interest rates, designed to curb the current 40-year high inflation. The S & P500 and NASDAQ composite plummeted 20% and 30% respectively. Market watchers are now on the lookout for the telltale signs that the broad sell-off has come to an end.
If Bitcoin investors are still talking about “buying on the downside” (like Michael Saylor's MicroStrategy) it means the market is bullish. It also means that "we haven't hit the bottom of a bear market," Mobius noted.
Cryptocurrency influencer Anthony Pompliano recently said that retailers who were thriving on quick earnings are now selling strong hands. The latter means those who buy and settle, rather than timing the markets.
Cryptocurrencies have revolutionized the world of economics and investment, offering a decentralized alternative to traditional…
Milkomedia-C1 announced the integration of the DJed stablecoin network on its platform. Milkomeda C1, a…
Cryptocurrencies have gained immense popularity over the last decade, attracting investors from all over the world. However,…
The former cryptocurrency exchange FTX was based in the Bahamas. The island nation has not been…
As Shiba Inu adoption skyrockets, the memecoin and the entire Shiba ecosystem…
The adoption of digital currencies such as Bitcoin has continued to grow unabated. Many…