New record for Bitcoin amid rumors of an AI bubble in stocks

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Last Updated on 14 March 2024 by CryptoTips.eu

Bitcoin went into ‘price discovery’ mode again yesterday, meaning it touched higher highs without immediate resistance from sellers.

After falling to $69k earlier this week, the largest digital coin quickly climbed back up to $73,000 a few hours later. At the time of writing, Bitcoin is trading at $73,500.

Wall Street is very happy with the rise of Bitcoin as boomers are investing heavily in Bitcoin ETFs, but at the same time analysts are becoming very anxious as rumors of a so-called ‘AI bubble’ in stock markets are growing

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Retail investors vs institutional investors

There are two types of investors: firstly ‘retail’ investors, which are the smaller ones like you and me, and secondly ‘institutional’ ones or the large investment funds such as BlackRock, Fidelity and many others on Wall Street. Ever since the American stock market watchdog SEC approved the Bitcoin ETF (exchange traded fund) at the beginning of this year, it have mainly been institutional investors who are pushing the price of Bitcoin higher.

BlackRock became the largest corporate whale earlier this week, owning more Bitcoins than Microstrategy. How high will we go? Hard to say, but it is clear that we are in a Bitcoin bull market.

Dotcom bubble

However, at the same time, rumors of an ‘AI bubble’ in the stock markets are also growing. The dreaded word was first reported in the Wall Street Journal earlier this month, and was echoed the day before yesterday by Jeremy Grantham, a true legend among Wall Street investors.

According to him, Nvidia’s current value is particularly a problem for the markets, because the share has already risen 87% since January 1.

Now of course, the issue with ‘bubble’ titles, as some older investors who remembered what happened in 2000-2001 (the famous ‘dotcom’ bubble), is that it makes new entrants doubt whether they should still get into Bitcoin at current levels.

So beware of volatility out there.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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