Some investors did use Pyongyang’s missile launch as a chance to drop into the hot asset du jour/an — bitcoin BTCUSD, +0.73% , that is. And that brings us to our chart of the day from Bespoke Premium. It lays out how the cryptocurrency’s rise stacks up against that of assets that eventually bubbled.
The chart shows how technology and home builder stocks traded in the days leading up to their bubbles. And in that light, if bitcoin was going to pop, the runup has been far more dramatic.
“The point was we don’t know if it’s a bubble or not, but we know how past bubbles look. And this is a comparison of bitcoin versus past bubbles,” said Justin Walters, co-founder of Bespoke, in an emailed comment.
The cryptocurrency has now surged past $4,000. It’s up a good 60% so far this month and up 360% so far this year.
On Twitter, the chart elicited a range of responses. “One problem here is hindsight bias. Comparing bitcoin to known bubbles assumes bitcoin is a bubble itself,” @InvestingonSale argues.
Submitted August 30, 2017 at 10:40PM by sana128 http://ift.tt/2xOrbmP
