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bitcoin

Mobius Says Bitcoin Is A Leading Indicator For Stock Indices

Mobius said a lot of people consider “buying down”. He stated that this means that the price of Bitcoin could drop further in the future.

Mobius represented cryptocurrencies as “a measure of investor sentiment.” He also classified Bitcoin as a leading indicator of how the Dow Jones index will perform in the short term.

BTC Has Not Bottomed Yet

American investor Mark Mobius stated that stock traders should carefully observe what is happening in the crypto market to make the right investment choices. He argued that it is a “leading indicator” that could suggest whether the Bitcoin price will head north or south.

Mobius:

“Bitcoin falls, the next day Dow Jones falls. This is the model you got. This shows that bitcoin is a leading indicator.”

Mobius said the bottom has been reached in traditional markets, as institutional and retail investors have sustained losses. For BITCOIN, people are “still talking about buying on the dips, which means there’s a sense of hope.” It’s also a sign that the bear market hasn’t bottomed out yet.

Unlike many other investors who prefer to deploy their capital in real estate, precious metals or cryptocurrencies due to the current inflationary environment, Mobius said it will instead hold “some cash”. At a later stage, it can invest in Indian stocks in the building materials sector and software and medical testing sectors.

In 2020, Mobius claimed that predicting what bitcoin’s USD value will be after a certain amount of time is very similar to winning a lottery or simply gambling.

Mobius:

The price of Bitcoin is not based on any reliable information. Rise is a casino operation based on all kinds of rumors and speculation.

There have been moments in the past when the primary cryptocurrency has moved at relatively the same pace as gold and the S&P 500. In fact, bitcoin’s price charts have been very similar to the aforementioned index, which tracks the performance of America’s top 500 publicly traded.

Still, according to Mobius, he said that since bitcoin has a unique character and trying to predict its future price is a gamble, such correlations should not be relied upon. There have been moments in the past when the primary cryptocurrency has moved at relatively the same pace as gold and the S&P 500. In fact, bitcoin’s price charts have been very similar to the aforementioned index, which tracks the performance of America’s top 500 publicly traded.

Still, according to Mobius, since bitcoin has a unique character and trying to predict its future price is a form of gamble, such correlations should not be relied upon.

RELATED : SEC Chair Seeks Formal Deal With the CFTC for Crypto Regulation 

About Hama Amefiz

Amefiz is a professional blockchain, cryptocurrency and tech journalist, regular contributor to newsbsc.com who is writing analysis about the latest developments in the cryptocurrency and blockchain space.

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