Bitcoin (BTC)Crypto News

Bitcoin is a leading indicator for stock indexes, says veteran investor Mark Mobius

                                                            Der milliardenschwere Fondsmanager und Gründer von Mobius Capital – Mark Mobius – stellte Cryptowährungen als „Maßstab für die Anlegerstimmung“ dar.  Er stufte Bitcoin als Frühindikator ein, der zeigt, wie sich der Dow-Jones-Index kurzfristig entwickeln wird.

BTC has not bottomed yet

American-born legacy investor Mark Mobius opined that stock traders should pay close attention to what is happening in the crypto market in order to make the right investment decisions. Specifically, he argued that Bitcoin’s price is a “leading indicator” that could indicate whether the Dow Jones (a popular stock index that tracks 30 of the largest US companies) will head north or south:

“Bitcoin falls, the next day the Dow Jones falls. This is the pattern you will receive. This shows that Bitcoin is a leading indicator.”

Mobius explained that the bottom in traditional markets is when institutional and retail investors “throw in the towel” and stop pouring money due to constant losses. However, in the case of Bitcoin, people are “still talking about buying at dips, which means there is a sense of hope.” It also signals that the bear market has not yet reached its bottom.

Unlike many other investors who prefer to allocate their capital into real estate, precious metals or cryptocurrencies due to the current inflationary environment, Mobius said he would be holding “some cash” instead. At a later stage he could invest in Indian stocks in the building materials, software and medical testing sectors.
Mark Möbius, Barrons

BTC Price Prediction is a “Losing Game”

In 2020, Mobius claimed that guessing Bitcoin’s USD valuation after a certain amount of time is very similar to winning the lottery – or just gambling:

“[Bitcoin’s price is] based on no reliable information… [It’s rise is a] Casino operation based on all sorts of rumors and speculation.”

There have been moments in the past when the primary cryptocurrency has moved relatively at 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 500 most powerful publicly traded companies over the past few months.

However, according to Mobius, one should not rely on such correlations as Bitcoin has a character of its own and trying to predict its future price is a “losing game”.

Featured image courtesy of Money Inc

Source: Crypto News Deutsch

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