Market pundit believes speculative trading is the driving factor in the evaluation of growth for crypto assets. Bleakley Advisory Group CIO Peter Boockvar stated that pure speculative trading influences growth for the majority of high-end stocks. This situation is despite the market undergoing a late-cycle and has become a major factor in the recent cryptocurrency bull run.
How Speculative Theory Works
Boockvar highlighted that the trends are not fresh in the market. Especially as it has been traditional with late-cycle trading in the entire stock market. The speculative theory asserts investors are constantly researching assets that present signs of outperforming market fundamentals. As a result, the market reacts with massive speculation trade volumes rather than key fundamentals such as Gross Domestic Product (GDP) or revenue growth.
According to Boockvar, a couple of major names do not disappear as forms of speculative assets. If at all the history of stock trading is anything to go by. The broader market reflects an appetite and a willingness by investors to gamble their investments. Nonetheless, leading corporations such as Tesla and Virgin Galactic are among firms enjoying good market reception since January this year. In any case, most of these companies have either doubled or tripled their stock unit price.
Boockvar added that anything with potential for growth makes sense, especially in the present where growth is slow.
“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 Trading on Bitcoin and Altcoins
Bitcoin and several leading altcoins have undergone a major bull run since the beginning of the year. In his opinion, Boockvar was establishing how big fishes in the crypto-verse value crypto rallies and large speculative sentiments.
Therefore, valuation for most crypto assets will only be assessed through several market dynamics. Especially by getting to understand how crypto guru approaches the market. This will make it easy for digital assets to prognosticate the next possible move on the price charts.