What is needed to move bitcoin almost 20% higher? What about Tesla (TSLA) – Get report CEO Elon Musk tweets simply ‘#Bitcoin.’
That’s what he did Friday morning, and bitcoin is now trading at $ 37,537.79, up 19%.
So, what’s up with this? Retail investors are in full-fledged manic mode.
It’s one thing to work for established companies, such as Amazon (AMZN) – Get report, Appel (AAPL) – Get report and Nike (NKE) – Get report, to protracted valuations.
But it’s quite a thing to risk GameStop (GME) – Get report, AMC Entertainment (AMC) – Get report, special-purpose procurement companies and bitcoin. This is already speculation at this stage.
Legendary 20de John Maynard Keynes, an economist, said investing in the stock market is like judging how others will judge a beauty pageant.
In the case of bitcoin, the stocks with a weak base, and SPACs, each reviewer rates the asset a perfect 10.
Nothing here is new. Given the human nature, there have been virtually bubbles since the beginning of time. Adam and Eve may have made forbidden fruit. The 17de century the Dutch tulip bubble and the 18de the South Seas bubble.
You are no doubt familiar with more recent bubbles – dot.com stocks in the late 1990s and the housing market in the early 2000s.
Bitcoin, so-called junk stocks and SPACs are simply a continuation of the line. Markets alternate between greed and fear, and currently greed is dominant.
Just remember that periods of greed in financial markets or any other part of life usually do not end well. The greedy usually do not go unpunished.