The crypto market is often compared to the dot-com bubble before the 2000-01 market crisis. Earlier this year, billionaire Mark Cuban had also said that the crypto sector resembled the “internet stock bubble,” however expressing optimism about Bitcoin’s survival.
In a recent interview, financial commentator Harry Dent Jr. made some predictions on similar lines. He said that he’s “super bull and super bear at the same time.” Reiterating that crypto is the “next big thing,” Dent explained, “internet stocks came the strongest at the last part of the first tech bubble.” He further said,
“In late 1998-99…the biggest part of that NASDAQ run was the dot coms, not the standard tech companies.”
Comparing it to digital assets, Dent said crypto is the biggest bubble, likely to see an imminent crash. However, he explained,
“Let’s say stocks go down at 85[%], crypto can go down 90-95[%], because it’s the strongest bubble, but it’s the first thing I would buy.”
Despite expectations of a fleeting run following a crash, Dent is bullish on crypto. Here’s why. According to him,
“I think the crypto is still in its early stages. It’s a real trend; it is the digitization of all financial assets and money is going to be a big trend, bigger than the internet because it’s about money and things of financial value.”
Meanwhile, investor Rich Bernstein has also warned investors that a plunge, particularly in Bitcoin, is looming. In the context of crypto demand, Bernstein also said,
“There’s a whole series of bubbles going on right now.”
He went to the extent of saying that a crypto fever is overshadowing strong markets, like oil. Advisor Nir Kaissar also recently noted that ‘”cryptocurrencies might be internet 2.0.” He said that back in the 1990s,
“Clients wanted internet stocks and tech IPOs. If I gave them what they wanted, they could lose money. If I didn’t, I could lose a client.”
Likewise, financial advisors can end up in a similar “bind” according to Kaissar. Then, how should investors go about their crypto holdings? Harry Dent Jr advised,
“If you do have Bitcoin, I would hold it till around the end of the year.”
He explained that an ATH by year-end would be the “ultimate sell” and then a “rebuy,” adding,
“Selling crypto at the top and rebuying at the bottom would be the fastest way to make wealth in history.”
