Bitcoin on stock market

Menu IconA vertical stack of three evenly spaced horizontal lines. Gundlach added that bitcoin carries so much predictive power “because it was the bitcoin on stock market child of the speculative mood late last year.

Bitcoin, the highly volatile digital currency, is proving to be the new stock market indicator, influential investor Jeffrey Gundlach said on Monday, adding that this is hardly just a “gut feeling” given the recent price movements. Gundlach, known as Wall Street’s “Bond King,” told Reuters in an interview. On Monday, Gundlach added that bitcoin carries so much predictive power “because it was the poster child of the speculative mood late last year. The hip bone is connected to the thigh bone. Gundlach said bitcoin’s price went vertical starting around mid-September. P 500 Index accelerated to the upside at exactly the same time, he said. Bitcoin mania was reached in mid-December and it promptly started to crash.

P frenzy, he said, continued on to Jan. 26 but “the bitcoin crash was shouting that the speculative mania of the social mood had already passed. P collapsed, joining Bitcoin in gear on the downside. P was diving to its lows, bitcoin was already rallying, Gundlach noted. P found a bottom and subsequently the tech-heavy Nasdaq even crawled back to a new high, he said.

But as that new high was being made, bitcoin was back in bear-market mode. Soon after it was tank time again for stocks. It is all tied together, obviously,” Gundlach said. In a January investor webcast, Gundlach said he believed the price on bitcoin had hit its peak. The high for bitcoin is in,” he said. It’s just a thing that is out there, unproven.

I have a theory that bitcoin is very different than what people think. People think that it is tremendously safe and anonymous and can’t be hacked and all that stuff. I have feeling that it is the opposite. This type of investment is very, very different from my conservative DNA,” Gundlach said. Get the latest Bitcoin price here. To cut through some of the confusion surrounding bitcoin, we need to separate it into two components. On the other hand, you have bitcoin-the-protocol, a distributed network that maintains a ledger of balances of bitcoin-the-token.

Both are referred to as “bitcoin. The system enables payments to be sent between users without passing through a central authority, such as a bank or payment gateway. It is created and held electronically. It was the first example of what we today call cryptocurrencies, a growing asset class that shares some characteristics of traditional currencies, with verification based on cryptography. A pseudonymous software developer going by the name of Satoshi Nakamoto¬†proposed bitcoin in 2008, as an electronic payment system based on mathematical proof. The idea was to produce a means of exchange, independent of any central authority, that could be transferred electronically in a secure, verifiable and immutable way.

To this day, no-one knows who Satoshi Nakamoto really is. In what ways is it different from traditional currencies? Bitcoin can be used to pay for things electronically, if both parties are willing. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally. Bitcoin’s most important characteristic is that it is decentralized.