Billionaire Investor Mark Cuban: Bitcoin Market Looks Like Dotcom Bubble
Bitcoin has seen immense volatility over the past few weeks, slingshotting between key support and resistance levels on a daily basis. Monday’s price candle alone had an $8,000 range, which is the largest ever.
just the ol 8k daily range pic.twitter.com/FXXet2NzmJ
— nic carter (@nic__carter) January 11, 2021
The cryptocurrency currently trades for $35,000, though fell as low as $30,000 just hours ago. Bitcoin also traded as high as $42,000 late last week, which was a new all-time high for the asset.
This volatility and growth have led some to liken Bitcoin to the Dotcom Boom and Bust.
Bitcoin and Crypto Is Just Like the Stock Bubble of 2000-2002?
Mark Cuban, billionaire investor, a Shark Tank “Shark,” and the owner of National Basketball Association’s (NBA) Dallas Mavericks, says that Bitcoin’s ongoing bull run looks similar to the Dotcom Bubble:
“Watching the cryptos trade, it’s EXACTLY like the internet stock bubble. EXACTLY. I think btc, eth , a few others will be analogous to those that were built during the dot-com era, survived the bubble bursting and thrived, like AMZN, EBay, and Priceline. Many won’t.”
He added that many Bitcoin and crypto investors will lose their capital, similarly to what happened back in the day with the internet stocks.
“Along the way MANY fortunes will be made and LOST and we find out who has the stomach to HODL and who doesn’t. My advice ? Learn how to hedge.”
Watching the cryptos trade, it’s EXACTLY like the internet stock bubble. EXACTLY. I think btc, eth , a few others will be analogous to those that were built during the dot-com era, survived the bubble bursting and thrived, like AMZN, EBay, and Priceline. Many won’t
— Mark Cuban (@mcuban) January 11, 2021
Cuban has long talked about Bitcoin, having said in the past that it may be wise for investors to keep a fixed percentage of their investments in the cryptocurrency. On other occasions, though, he likened the leading cryptocurrency to bananas.
Lots of Growth to Come
Cuban is not making a price prediction, though analysts say that the market has room to grow.
Chamath Palihapitiya, a Canadian-American venture capitalist known for buying a large amount of the Bitcoin supply, says that BTC could hit $100,000-200,000 in the future due to the macroeconomic and geopolitical trends taking place today.
Other prominent investors in the space have made similar predictions, noting that the macro trends for Bitcoin are still skewed bullish.
Joe Biden, the incoming President of the United States, is expected to call for a trillion-dollar stimulus plan that may end up pushing the U.S. dollar lower.
Bitcoin stands to benefit from this as a hedge against the devaluation of the U.S. dollar. Just yesterday, BTC crashed as the U.S. dollar bounced, and today, the cryptocurrency has begun to recover as the U.S. dollar falls once again.
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