The popular Mark Cuban billionaire investor, says that the bitcoin market looks like the dotcom bubble now as it saw immense volatility in the past few weeks, swinging between key supports and resistance levels every day. Monday’s price candle had $8000 range which was the largest ever as we saw in the previous bitcoin news and analysis.
The cryptocurrency trades for $35,000 but fell as low as $30,000 hours ago. Previously, it traded as high as $42,000 which was a new all-time high for the asset. The volatility and growth led to some connecting Bitcoin to the DotCom bubble. The well-known Mark Cuban billionaire investor and owner of National Basketball Association’s Dallas Mavericks said that bitcoin’s ongoing bull run looks similar to the Dotcom bubble:
“Watching the cryptos trade, it’s EXACTLY like the internet stock bubble. EXACTLY. I think btc, eth , a few others will be analogous to those that were built during the dot-com era, survived the bubble bursting and thrived, like AMZN, EBay, and Priceline. Many won’t.”
Watching the cryptos trade, it’s EXACTLY like the internet stock bubble. EXACTLY. I think btc, eth , a few others will be analogous to those that were built during the dot-com era, survived the bubble bursting and thrived, like AMZN, EBay, and Priceline. Many won’t
— Mark Cuban (@mcuban) January 11, 2021
He added that BTC and other crypto investors will lose more capital similar to what happened back in the day with the internet stocks. He wrote:
“Along the way MANY fortunes will be made and LOST and we find out who has the stomach to HODL and who doesn’t. My advice ? Learn how to hedge.”
Cuban talked about BTC in the past and said that it is wise for investors to keep a fixed percentage of their investments in crypto but he initially compared BTC with bananas. Cuban is not making more price predictions but analysts say that the market has more room to grow. Chamath Palihapitiya, a well-known venture capitalist says that BTC will hit $100,000 in the future because of the current geopolitical trends that are taking place today.
just the ol 8k daily range pic.twitter.com/FXXet2NzmJ
Other investors in the space made similar predictions and noted that the macro trends for BTC are skewed bullish. Joe Biden is expected to call in another trillion-dollar stimulus plan which could push the US dollar even lower. BTC still stands to benefit from this as a hedge against the crashing dollar but it did crash yesterday when the US dollar bounced. Today, BTC recovered.
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