Well-known investor Mark Mobius called bitcoin a “mood indicator” in the stock market. Given the decline in the cryptocurrency market, Mobius recommends buying stocks.
In a recent interview, Mobius Capital Partners co-founder Mark Mobius spoke about current trends in the global market. Now investors are experiencing a “crypto winter”. The capitalization of the cryptocurrency market fell to $906 billion, although back in November it was trying to reach an all-time high of $3 billion. Back then, Bitcoin reached an all-time high of $69,000, but now it is trading at $20,000. According to Mobius, when Bitcoin falls, literally the next day falls and the Dow Jones Industrial Average.
Mobius believes that bitcoin has become a leading indicator that gives stock investors an idea of where the market is heading. The stock market only bottoms when institutional and retail investors stop investing heavily due to drastic losses, so it’s time to start buying stocks, the investor said.
US stocks sank sharply in price against the background of the tightened policy of the US Federal Reserve System (FRS). The regulator raised the interest rate to curb inflation, which increased by 8.6%, which was the highest value in the last 40 years. If bitcoin investors are still talking about buying it on the dip, Mobius said, it gives a sense of hope that the stock market will also rise.
Mobius has been a supporter of investing in stocks before, as he is not convinced that bitcoin can save capital from inflation, even despite the fall of the US dollar. A few years ago, he compared buying bitcoin to playing in a casino, and called attempts to predict the price of bitcoin “games of losers.”