David Rosenberg: “We are seeing the biggest bubble in Bitcoin”
Former Merrill Lynch economist David Rosenberg believes that we are now witnessing the next phase of the “bubble” in Bitcoin.
During an interview on CNBC, the founder of Rosenberg Research said that he avoids investing in bitcoin, especially after the recent large-scale growth of the first cryptocurrency, when the BTC rate reached $ 34,800. According to Rosenberg, such a sharp parabolic growth in a short period of time is “extremely abnormal” and bitcoin now resembles “the largest bubble in the market.”
However, according to Rosenberg, the bubble is observed not only in the cryptocurrency market, but also in the stock market, because the Dow Jones and S & P500 indices are at historic highs. Analysts at his company, “based on a variety of indicators,” believe that the stock market is overvalued by 20-30%. However, while this bubble is supported by low or negative base rates of central banks and accelerated emission of the dollar to support the economy during a pandemic.
The former lead economist at Merrill Lynch expects the capitalization of state digital currencies to gradually grow and over time will exceed that of the cryptocurrency market. In the near future, Rosenberg plans to invest in promising companies in the energy sector, as well as buy gold.
Previously, Pantera Capital CEO Dan Morehead said that the market situation is significantly different from the 2017 bubble and bitcoin is growing due to other factors.