New record for Bitcoin amid rumors of an AI bubble in stocks

Bitcoin went into ‘price discovery’ mode again yesterday, meaning it touched higher highs without immediate resistance from sellers.

After falling to $69k earlier this week, the largest digital coin quickly climbed back up to $73,000 a few hours later. At the time of writing, Bitcoin is trading at $73,500.

BITCOIN IS PUMPING!!

$80,000 by the halving!! pic.twitter.com/lAXDox4UlH

— borovik.eth (@3orovik) March 13, 2024

Wall Street is very happy with the rise of Bitcoin as boomers are investing heavily in Bitcoin ETFs, but at the same time analysts are becoming very anxious as rumors of a so-called ‘AI bubble’ in stock markets are growing

Retail investors vs institutional investors

There are two types of investors: firstly ‘retail’ investors, which are the smaller ones like you and me, and secondly ‘institutional’ ones or the large investment funds such as BlackRock, Fidelity and many others on Wall Street. Ever since the American stock market watchdog SEC approved the Bitcoin ETF (exchange traded fund) at the beginning of this year, it have mainly been institutional investors who are pushing the price of Bitcoin higher.

BlackRock became the largest corporate whale earlier this week, owning more Bitcoins than Microstrategy. How high will we go? Hard to say, but it is clear that we are in a Bitcoin bull market.

Dotcom bubble

However, at the same time, rumors of an ‘AI bubble’ in the stock markets are also growing. The dreaded word was first reported in the Wall Street Journal earlier this month, and was echoed the day before yesterday by Jeremy Grantham, a true legend among Wall Street investors.

According to him, Nvidia’s current value is particularly a problem for the markets, because the share has already risen 87% since January 1.

The man who has predicted 20 of the last 2 market tops warns that the AI surge has caused a bubble within a bubble to form resulting in stocks to be priced near perfection. Jeremy Grantham says looking at history books is meaningless since this has never happened before. pic.twitter.com/vQPifWZIQk

— Barchart (@Barchart) March 12, 2024

Now of course, the issue with ‘bubble’ titles, as some older investors who remembered what happened in 2000-2001 (the famous ‘dotcom’ bubble), is that it makes new entrants doubt whether they should still get into Bitcoin at current levels.

So beware of volatility out there.