Insane speculative trading has been the driving factor in the crypto assets valuation growth, this is according to the chief investment officer at Bleakley Advisory Group, Peter Boockvar. According to him, pure speculative trading has been the driving force in most high-end stocks, even as the market indicates a ‘late-cycle’, and has also been the key factor in Bitcoin and most altcoins recent bull run.
How Speculative Theory Works
According to Boockvar, this kind of sensation is not new in the market, as it has been the norm with the late-cycle trades in most stock markets.
In his theory, investors are constantly looking for assets that are showing signs of pushing higher and outperform the expected market fundamentals. With this kind of speculation, the market has been reacting to large speculation trade volume instead of key fundamentals like GDP, or revenue growth that propels the market.
In the history of stock trading, some names never go awash in the list of speculative assets. In his words, “For the broader market, it is reflective of risk appetite and the investors willing to roll the dice.”
Big companies like Virgin Galactic and Tesla are some of the companies that have enjoyed a good market reception since the beginning of the year. With stocks rising constantly, most have doubled if not tripled the stock unit price recorded at the beginning of the year.
Most of these stock prices are prone to huge pullback due to the fact that the investors are valuing the companies based on future earnings rather than on what the companies are doing currently.
Boockvar continued to say that, “In a world right now where there is slowing growth, there is a search on for anything growth-related… and what’s cooler than electric vehicles and space?”
Insane Hazardous Trading on Bitcoin and Altcoins
Bitcoin and most top-rated altcoins have been rallying since the start of 2020. What the analyst is essentially putting forward is that the crypto rally is hailed forward by crypto big fishes and huge speculative sentiments.
“Late-cycle does not necessarily mean end of cycle,” … “Bitcoin you could have thrown out there as late cycle,” Boockvar stated.
This is the reason why most crypto asset valuations can be scrutinized by understanding the market dynamics. By getting to know what the crypto gurus are up to, it is easier to prognosticate the next possible move for the digital asset prices.