Dogecoin, the mean cryptocurrency made famous by a smiling Shiba
Inu,
reached its highest level since 2021 on Thursday.
This rise is part of a broader trend moving away
from traditional finance sectors.
Take the S&P 500, for example.
It's tipped record highs 17 times this year and what
will likely be the best first quarter gain since 2019.
In a recent interview with Bloomberg,
Bank of America's chief investment strategist Michael Hartnett raised concerns
about a potential market bubble.
Specifically pointed out the exceptional gains in tech stocks referred
to as the Magnificent 7,
as indicative of this bubble within the booming bull market.
So first of all, there is a bubble,
right? Are you seeing a bubble?
There's characteristics of a bubble.
It would make sense even what the Magnificent 7 and
AI related stocks and you know,
you can see a little bit of it in crypto
as well.
I mean there's tremendous euphoria.
The euphoria is there because of the Fed.
the Fed wants to cut rates.
Come what may, you know and and the markets are
front running that in gold,
in crypto, in equities, even in corporate bonds.
But a bubble, you know,
is when too much money chases too few goods.
And everyone wants chips, and there's a lot of money
sort of chasing that.
And yeah, I think it has characteristics in terms of
price,
the speed of the movement,
the valuation, the breadth. You know,
bubbles are narrow bull markets abroad,
and this isn't very broad.
In turn, the crypto sector,
particularly Bitcoin ETFs, has caught investors attention.
This year's approval of Bitcoin ETFs fueled a significant market
rally,
pushing its market cap to more than 1.4 trillion.
And big companies are taking note.
BlackRock and Fidelity have seen significant investor interest in their
ETFs,
drawing nearly $8 billion. And at the time of this
recording,
Bitcoin is trading at $71,000.