Edward Yardeni Thinks The Current Bitcoin Bull Market Will Not Last
In a recent interview with CNBC’s Friday business review program- trading nation, Edward Yardeni, popularly known as Ed Yardeni, the President of Yardeni Research, worries that the recent cryptocurrency and technology bull run might eventually lead to a debacle.
The investment strategist who himself spent decades running business investments for numerous firms including Deutsche Bank, oak associates, and his management firm Yardeni Research, believes that the recent excitement surrounding the booming industries is comparable to that of the dot-com bubble in 1999.
Ed Yardeni likens the bull run to Nasdaq
In the business strategist interview, he likened the current run to that of Nasdaq. In his statement, he considered that it took Nasdaq two years to double its valuation. The global electronic marketplace for buying and selling securities is back to where it all started. Yardeni feels like the tech-heavy Nasdaq, who closed the week at a record high of 13,201.97, explains why everything looks like it is pointing towards a melt-up.
Yardeni also sights the case of Bitcoin as that which should give investors a bit of worry due to its meteoric rise nature. He believes that the rapid rise of the most valuable cryptocurrency over the past six months should not just be all smiles for investors but also give them concern if things go south. The cryptocurrency has gone up by 40% in the last ten days and cumulatively by 300% in the last two quarters by his analysis.
Yardeni expects every investor to check the current chart to smile but advises that they prepare for dark days, should they arrive. The strategist concedes that he has not been negative. He expects that economies start to revive amidst the boom surrounding investment and the widespread distribution of COVID-19 vaccines to help normalize the world.
Inflation might be prevalent in 2021’s second quarter, Yardeni argues
Yardeni believes that the first of 2021 will see an upturn in the world’s fortune in both the fiscal and monetary landscape. He believes that government intervention will be on the rise and expects the interest rate to remain low, to aid ailing businesses and organization which have been adversely affected by the pandemic.
The business mogul also fears that the second half of 2021 could see an increase in consumer price inflation due to the mass availability of stimulus, which he feels would be of no good to overvalued assets. The investment magnate also ended his interview with high hopes for bonds and cryptocurrency, which the world is turning its head towards.
The mainstream adoption and influx towards cryptocurrencies like Bitcoin, according to Yardeni, is a result of the need to make gains from the rising prices of the cryptocurrency. Yardeni doesn’t expect this influx to change, at least anytime soon.