‘Sounds right, but we have to do a lot of research. '
Experts finally found a relationship (hypothesis) between the movement of cryptocurrencies and the equity market that can be used as a monitor in stock investing activities.
The matter was discovered by Mark Mobius, co -founder of Mobius Capital Partners who has more than 30 years of experience at Franklin Templeton Investments, saying that equity market sentiment is closely linked to the movement of Bitcoin (BTC).
Clearly he in an interview confirmed that cryptocurrencies are a measuring stick to investor sentiment.
Mobius has cited the example of when the BTC declines, then the next day the Dow Jones index also falls.
It clearly shows a pattern with BTC being a key indicator in the movement, Mobius asserted.
Based on that hypothesis, the conclusion that can be reached is that when institutional investors have ‘given up’ and stopped putting money in the market is the best time to buy stocks.
He added that as long as BTC investors are still expecting ‘buy the dip’ then it means the market has not reached the floor yet.
Meanwhile, the movement of BTC and global stocks is seen to be positively correlated this year.
While the crypto market has fallen sharply with the BTC down 70% so far this year on recessionary concerns, coincidentally the equity market is also bearish as the MSCI index also plunged due to supply problems.
