Bitcoin Decline May Hit Tech Stocks Very Badly: Mark Mobius
The eponymous founder of Mobius Capital Partners LLP, Dr. Joseph Bernhard Mark Mobius opens-up about his fear for the decline of Bitcoin. In an interview with Bloomberg, he shared his beliefs about the correlation between Bitcoin and the tech stock market which he finds very close.
According to the investors, the existing problem of the stock market is the technology sector. Mobius hope for the surge in the first digital currency which enable the revival of tech stocks after the decline (if happened).
Mark Mobius Fear of Bitcoin Decline
Mark Mobius is observing the crypto-space closely due to his fear of the decline of Bitcoin which may hit the share price of technology company very badly. His statement reads, “I think the relationship between bitcoin prices and the tech market is very close, Bitcoin decline may hit tech stocks very badly ” “So watch that indicator.” he added.
After the decline in prices at the end of the previous month, Bitcoin reached $43,000. At the beginning of the first week of March, the digital gold jumped from $49,000 to $54,000. The U.S. Senate passed the $1.9 trillion stimulus program is one of the key reasons for Bitcoin recovering to $55,000. At the time of writing, the biggest crypto is trading at $55,639.
Gold Is Falling Due To Bitcoin Surge
When asked about his take on the recent decline in the value of gold, Mobius said
“he is holding onto his gold, despite the massive outflows from gold ETFs”, He mentioned that, “all these people and they say, gee! Bitcoin is like gold, it’s a store of value!” and mentioned this as the reason why Au is down.
Gold fell 0.3% to $1,710 per ounce on Wednesday and has fallen 7% in the last month.
Mobius correlated between gold and bitcoin and said “otherwise there’s no good reason why gold should be down.”
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