Wall Street Veteran Fears Future Bitcoin Decline Could Drag Down Stock Markets

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Last Updated on 23 March 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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There has been no shortage of Wall Street veterans warning people that stock markets are in a bubble and that the least bit of troubling news could set them off.

However, Mark Mobius, the veteran emerging markets investor, went a step further than that. In several interviews this week he claimed that because of the importance of Bitcoin by now, and the fact that so many grand companies and funds are invested in it (Tesla, Square, PayPal, MicroStrategy, ARK). Any implosion of the Bitcoin price could drag down stock markets as well.

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Mobius gave several interviews this week in which he highlighted the importance of acknowledging that the current market is in a bubble.

We are in a bubble in some areas of the market, particularly in the opaque cryptocurrency market and in some companies that are popular for one reason or the other, even though there are continuing earnings losses.

Mobius said, of course hinting at the overpriced stock of Tesla, which many longtime investors had missed in its run-up and therefore it is now getting slammed in the press.

One of the things I fear… is a decline of the bitcoin price. The relationship between bitcoin prices and the tech market is very close, so watch that indicator. bitcoin prices go down, I think the tech stocks are going to be hit very badly.

The co-founder of Mobius Capital Partners said in another interview.

As mentioned earlier this week, it is quite striking that the Dow Jones and the Nasdaq are quite so far apart at this moment. The tech-heavy Nasdaq has seen an official correction while the industry-focused Dow Jones is reaching a new all time high.

The 84-year-old investor admitted that it was striking that gold was down while Bitcoin was up though, stating:

There’s some relationship between these two and one of the reasons why gold is down.

Otherwise there’s no good reason why gold should be down at this stage.

The next few weeks will be interesting.

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