Wall Street Expert: Bitcoin is Attracting New Investors to the Stock Market
December 22, 2017
The stock market expert and Birinyi Associates founder Laszlo Birinyi believes that the phenomenal increase in Bitcoin's price, which has risen by 1,950 percent since January 2017, is serving as a catalyst for the global financial market overall and attracting new investors to the stock market. He added that the cryptocurrency "magic" is also providing a much needed push for the traders in the stock exchanges.
In a CNBC phone interview, Birinyi said that Bitcoin mania attracts a huge amount of "passive money" to the stock markets:
"Bitcoin is now attracting a lot of interest. More and more people are realizing what is happening in the stock market, and that there is a very real way to make money. "
However, according to Birinyi, Bitcoin has been demonstrating bubble-like features in the last few weeks. He added that if Bitcoin is really just a cryptocurrency bubble, it is already bigger than some of the largest financial bubbles in history, including the Nasdaq bubble of the late 1990s.
Birinyi also said that he does not want to invest in Bitcoin long-term, but believes that it is very suitable for a trading instrument. In fact, he claimed that he successfully traded the cryptocurrency during the second Bitcoin futures launch on the Chicago Mercantile Exchange (CME) December 18 and "made $ 3,000 per hour."
While the most famous digital currency has its share of skeptics, more and more Wall Street investors are entering the crypto market. Well-known American investor Bill Miller recently told reporters that 50% of his hedge fund’s money is currently invested in Bitcoin.