A crypto analyst linked the world of cryptocurrencies to the recent boom in AI-linked stocks. What similarities are there?
mads eberhart, Saxo Bank cryptocurrency analyst explained that there are “numerous similarities” between the cryptocurrency market and the recent boom in AI-linked stocks.
“In recent years, the market for cryptocurrencies it has experienced two such one-way streets before the capital reserves were depleted, causing the bubbles to burst. These bubbles occurred in 2017 and 2021, when the value of the bitcoin (BTC), ethereum (ETH) and other cryptocurrencies skyrocketed, later plummeting as much as 90% the following year,” Eberhart explains.
This analyst recalls that in these bull markets not only did prices rise, but projects and companies Cryptocurrencies could easily raise money as everyone wanted to participate in this buoyant market. “And suddenly no one seemed to care anymore, leaving only a few interested in cryptocurrencies,” said the Danish bank expert.
bitcoin-cryptocurrencies
freepik.es
All in all, Eberhardt recalls that it is difficult to draw comparisons with the cryptocurrency market due to its volatility, its lack of regulation, its limited history and the “great discrepancies about whether it has any intrinsic value.”
However, despite the “broad” consensus that it is a bad model with which to compare other markets, the Saxo Bank strategist does believe that it is of interest in a specific case: “Bubbles caused by immature technologies but highly anticipated.” In this case, he explains, “no market is possibly more suitable than crypto for comparison.”
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
