Is the Bitcoin bubble about to collapse? The answer may surprise you
Jordi Visser, former CIO and president of Weiss Multi-Strategy Advisors, is certain that Bitcoin (BTC) has not entered a “bubble” phase above $100,000. To reach the potential top, it first needs to rise against the MAG7, an index of major US technology stocks.
No, says veteran investor Jordi Visser Bitcoin (BTC) is not a bubble
Veteran investor, market commentator, and podcaster Jordi Visser shares in his latest X series that the “Bitcoin price rally or bubble top” has not yet happened. Even with the fact that Bitcoin (BTC) has managed to double its price for the second year in a row, it is far from what looks like a bubble for tech companies.
For example, the overall price chart of Bitcoin (BTC) looks very different from the “internet bubble” of the 1990s, which recorded zero years in the red. MicroStrategy’s exaggerated journey into crypto should not be taken as a sign of a “bubble phase.”
Instead, Visser recalled the NFT surge of 2020 and 2021 and the early meme coin craze as prime examples of what a crypto bubble might look like. It was accompanied by media euphoria and a stellar performance across all altcoin asset classes:
As such, this cycle’s altcoin statistics also confirm that we’re a long way from the top. As U.Today previously covered, the ETH/BTC ratio, a crucial indicator of the altcoin segment, hit multi-year lows in recent weeks before Bitcoin (BTC) surged above $100,000.
Ethereum (ETH) hasn’t been that cheap against Bitcoin (BTC) since April 2021. Visser admitted that despite ETH’s return to above $4,000, it has still failed to revisit its all-time highs.
All Eyes on Magnificent 7
We’re also still in the midst of the Bitcoin and Ethereum ETFs being pumped into the US and Hong Kong. Recent data suggests that this massive inflow is far from exhausted.
Despite all the controversy and regulatory hostility, cryptocurrency ETFs have become the fastest-growing products in the entire history of ETFs.
However, to register a proper “bubble” case, Bitcoin (BTC) would need to rise against the MAG7, an index of leading technology stocks including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), Amazon.com (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA).
One senior IT executive concluded that this particular process – the BTC/MAG7 price parabolic growth – represents the top of the last two Bitcoin (BTC) price cycles.