Bitcoin and tech stocks: how one can affect the other
Founder of Mobius Capital Partners, Mark Mobius confessed his “fears” of the decline of the price of Bitcoin. The emerging markets fund manager thinks Bitcoin prices can especially have a negative impact on tech stocks. Speaking to Bloomberg Markets, Mobius stated that the relationship between Bitcoin prices and tech markets is very close and added:
Bitcoin’s decline may hit tech stocks very badly
According to Mobius, the real problem in the stock markets is in the technology sector since he believed that such companies “have no earnings and that have been pushed up dramatically.” In addition to sharing his opinion, the founder asked investors to keep a watch on the co-relation. He further said that if Bitcoin prices go down “tech stocks are going to be hit very badly.”
The veteran investor admitted to holding gold even though the market has seen significant outflows from gold ETFs. Mobius thinks Bitcoin and Gold are also co-related which is one of the reasons why the precious metal has been down. He added:
I think there again is a relationship between Bitcoin and gold because you talk to all these people and they say gee Bitcoin is like gold as a store of value. So I think there is some relationship between these two. And one of the reasons why gold is down otherwise is no good reason why gold should be down at this stage.
Mobius further said addresses the volatile price of Bitcoin and hoped that it would “stay up.” But he quickly added that he was “not predicting or wishing” that Bitcoin goes down in price but “hopes” the price of Bitcoin “stays up because tech stocks then will be able to revive.”
Meanwhile, Bitcoin has been on a rally with a 3.7% surge in price in the past 24 hours, The crypto asset was trading at $56,376 at press time, and maybe inching toward its previous ATH of over $58,000.