The bitcoin price has more than 10% in recent days, rising back over $50,000 and now toward its all-time high of $58,000 per bitcoin since the U.S. declared a massive $1.9 trillion coronavirus stimulation package.
Together with the bitcoin price up a blistering near-600% over the previous 12 months, even investing superstar Mark Mobius has warned that a sharp bitcoin decrease could hit technology stocks’very poorly.’
One of the things which I fear, believe it not, is that a decrease of this bitcoin price. I think that the connection between bitcoin prices and the tech market is quite close,’ Mobius, the founding partner of Mobius Capital Partners, informed Bloomberg this week, including investors need to:’Watch that indicator.’
Bitcoin’s screeching rally has been put down to a combination of Wall Street institutional adoption, corporate interest, also retail merchants piling into the bitcoin and cryptocurrency market.
In early February, Tesla, the electric car-maker led by billionaire Elon Musk, set the bitcoin market alight as it shown it’d purchased $1.5 billion value of bitcoin. Speculation other technology businesses could follow Tesla into bitcoin have fanned the flames, with cryptocurrency mania engulfing markets.
Hopefully [bitcoin] stays up, I am not calling or wanting it goes down,’ Mobius stated. ‘However, I only hope it remains up because technology stocks then are going to have the ability to revive.’
Tech stocks which have now taken a battering lately have climbed so far this week, going higher in tandem with all the bitcoin price, led by Tesla.
Bitcoin investors along with cryptocurrency analysts are feeling confident the recent bull run is not yet over.
After dropping as low as $53,500, buyers possess re-entered the major phase and pushed bitcoin to $57,000,’ Alex Kuptsikevich, senior financial analyst at FxPro stated in emailed remarks.
‘There is a great chance that the benchmark cryptocurrency will go into land above $60,000.