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Bitcoin Is a Leading Indicator for Stock Indexes, Says Legacy Investor Mark Mobius

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Billionaire fund manager and founder of Mobius Capital, Mark Mobius, has presented cryptocurrencies as a “measure of investor sentiment.” He classified bitcoin as a leading indicator that shows how the Dow Jones will perform in the short term.

BTC hasn’t bottomed yet

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American-born legacy investor Mark Mobius opinion that stock traders should closely monitor what is happening in the crypto market in order to make the right investment choice. In particular, he argued that the price of bitcoin is a “leading indicator” that can indicate whether the Dow Jones (a popular stock index that tracks the top 30 US companies) will move north or south:

“Bitcoin falls, the next day the Dow Jones falls. This is the template you get. This shows that bitcoin is a leading indicator.”

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Moebius stated that the bottom in traditional markets is reached when institutional and retail investors “throw in the towel” and stop pouring in money due to constant losses. However, in the case of Bitcoin, people “are still talking about buying on the dip, which means there is a sense of hope.” It also signals that the bear market has not bottomed out yet.

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Unlike many other investors who choose to allocate their capital into real estate, precious metals or cryptocurrencies due to the current inflationary environment, Mobius said he would have “some money” instead. At a later stage, he could invest in Indian stocks in building materials, software and medical testing.

Mark Moebius, Source: Barrons

BTC price prediction is a “loser game”

In 2020, Mobius stated that guessing what the USD value of bitcoin will be after a certain period of time is very much like winning the lottery or simply gambling:


“[Bitcoin’s price is] based on misinformation… [It’s rise is a] the work of the casino is based on all sorts of rumors and conjectures.”

There have been times in the past when the major cryptocurrency moved at a relatively similar pace to gold and the S&P 500. In fact, the price charts of bitcoin were very similar to the aforementioned index, which follows the 500 most influential public funds in America. -traded firms in recent months.

However, according to Moebius, such correlations should not be relied upon, as bitcoin has its own character, and trying to predict its future price is “a loser’s game.”

Featured image courtesy of Money Inc.

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