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Famous old-school investor Mark Mobius has talked to Bloomberg and stated that one of the things he fears is the decline of Bitcoin.
Here’s why he is watching this market very closely.
“Bitcoin decline may hit tech stocks very badly”
Legendary investor Mark Mobius, founding partner at Mobius Capital Partners has told Bloomberg that he believes the correlation between Bitcoin and the tech stock market to be very close.
He has recommended watching that space closely, since, he fears that a decline of Bitcoin may hit the share price of technology companies “very badly”.
The investor believes that the real problem of the stock market at the moment is in the sector of technology companies.
Mobius hopes that Bitcoin stays up, because in that case tech stocks may be able to revive after the recent decline.
“Gold is falling because Bitcoin getting more popular”
When asked about gold and its recent decline into the $1,700 area, Mobius said he is holding onto his gold, despite the massive outflows from gold ETFs.
He mentioned talking to “all these people and they say, gee! Bitcoin is like gold, it’s a store of value!” and assumed that this is the reason why XAU is going down at the moment.
Mobius reckons that there may be some sort of correlation between gold and Bitcoin as well, “otherwise there’s no good reason why gold should be down”.
Bitcoin recovers to $55,000 as US passes the $1.9 trillion stimulus program
After declining to the $43,000 level on February 28, Bitcoin has gradually recovered. At the start of the week, the flagship cryptocurrency went from the $49,000 zone to the $54,000 level as the US Senate passed the $1.9 trillion stimulus program.
At the time of writing, the biggest crypto is changing hands at $55,090.