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Bitcoin's Current Status: Not a Bubble, Says Investment Expert
According to U.Today, Jordi Visser, former Chief Investment Officer and president of Weiss Multi-Strategy Advisors, has expressed confidence that Bitcoin (BTC) has not yet entered a 'bubble' phase, even as its price hovers around $100,000. Visser, a seasoned investor and market commentator, shared his insights on social media, emphasizing that Bitcoin's current price trajectory does not resemble the speculative bubbles seen in the past, such as the 1990s Internet bubble.
Visser pointed out that despite Bitcoin doubling its price for the second consecutive year, it remains far from the characteristics of a bubble typically observed in tech companies. He highlighted that the Bitcoin price chart is distinct from the patterns seen during the Internet bubble era, which experienced no years in the red. Additionally, he dismissed the notion that the overhyped involvement of companies like MicroStrategy in cryptocurrency signals a bubble phase.
Instead, Visser referenced the 2020-2021 NFT and early meme coin frenzies as examples of what bubbles might look like in the crypto space. These periods were marked by media euphoria and impressive performances across various altcoin assets. He noted that the altcoin index is still significantly below its previous highs, indicating that the market is far from reaching a peak.
Visser also mentioned that the ETH/BTC rate, a key indicator for the altcoin segment, recently hit a multi-year low before Bitcoin's surge past $100,000. Despite Ethereum's (ETH) price recovering to over $4,000, it has yet to revisit its all-time high. Furthermore, Visser highlighted the ongoing capital inflow into spot Bitcoin and Ethereum ETFs in the U.S. and Hong Kong, which remains robust despite regulatory challenges. These crypto ETFs have become the fastest-growing products in ETF history.
To achieve a true 'bubble' status, Visser argued that Bitcoin's price would need to rally against the MAG7 index, which includes major tech stocks like Apple, Microsoft, Alphabet, Amazon.com, Nvidia, Meta Platforms, and Tesla. He concluded that the parabolic growth of the BTC/MAG7 rate has historically marked the top of previous Bitcoin price cycles.
Visser pointed out that despite Bitcoin doubling its price for the second consecutive year, it remains far from the characteristics of a bubble typically observed in tech companies. He highlighted that the Bitcoin price chart is distinct from the patterns seen during the Internet bubble era, which experienced no years in the red. Additionally, he dismissed the notion that the overhyped involvement of companies like MicroStrategy in cryptocurrency signals a bubble phase.
Instead, Visser referenced the 2020-2021 NFT and early meme coin frenzies as examples of what bubbles might look like in the crypto space. These periods were marked by media euphoria and impressive performances across various altcoin assets. He noted that the altcoin index is still significantly below its previous highs, indicating that the market is far from reaching a peak.
Visser also mentioned that the ETH/BTC rate, a key indicator for the altcoin segment, recently hit a multi-year low before Bitcoin's surge past $100,000. Despite Ethereum's (ETH) price recovering to over $4,000, it has yet to revisit its all-time high. Furthermore, Visser highlighted the ongoing capital inflow into spot Bitcoin and Ethereum ETFs in the U.S. and Hong Kong, which remains robust despite regulatory challenges. These crypto ETFs have become the fastest-growing products in ETF history.
To achieve a true 'bubble' status, Visser argued that Bitcoin's price would need to rally against the MAG7 index, which includes major tech stocks like Apple, Microsoft, Alphabet, Amazon.com, Nvidia, Meta Platforms, and Tesla. He concluded that the parabolic growth of the BTC/MAG7 rate has historically marked the top of previous Bitcoin price cycles.
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