The largest cryptocurrency’s gradual “decoupling” from stocks may see a major test in the coming weeks, warns eToro’s Yoni Assia.
The CEO of a major trading platform has warned that a new stock market crash will come in less than a month, and investors should pay attention now.
In a series of tweets on June 11, Yoni Assia, CEO of eToro, forecast a crash coming “in the next three weeks.”
Assia on the stock market: Buyer beware
Arguing that recent stocks’ growth was speculative in nature, Assia said that a correction was now due.
“There is a crash coming soon (in the equities market), in the next 3 weeks, someone, not sure whom, is going to sell/short their position and crash the markets,” he wrote.
“Buyers beware. Caveat emptor.”
The grim alert follows weeks of unusually buoyant growth in stocks, which have gained despite ongoing coronavirus measures and the U.S. mass protests.
At the same time, Bitcoin (BTC) has increasingly “decoupled” from macro market movements, providing a viable safe haven for those wishing to escape the risk.
The S&P 500 gained around 400 points in May and now sits at around 3,200 points, less than 200 below its position in early March. At the height of the crash, the index fell to lows of 2,232 points.
Bitcoin has meanwhile become the best performing macro asset in Q2, with returns of more than 50%.
Bitcoin vs. S&P 500 1-year chart. Source: Skew
“Fuelled by speculation”
As Cointelegraph reported, suspicions over stocks have long come from Bitcoin proponents, who argue that state intervention in the form of buybacks is creating artificial competition on the market.
Three months after the initial mass crash in March, Such interventions are only gathering momentum, with the European Central Bank the latest to double the size of its stimulus plans.
Assia meanwhile stopped short of suggesting his warning was financial advice for any investor.
“Just to clarify, I believe we will (have) a correction since this rally seems to be fueled by speculation of retail investors. Historically these rallies end with a correction,” he continued.
“On the other hand, money is being printed in unprecedented amounts, and interest rates are zero.”