Legendary investor Mark Mobius says investors should watch bitcoin to figure out if the stock market has bottomed

Mark Mobius.South China Morning Post/Getty Images
Bitcoin acts as a leading indicator for stocks, billionaire investor Mark Mobius told Bloomberg.
"Cryptocurrencies are a measure of investor sentiment," he said in an interview published on Wednesday.
Bitcoin has lost more than 70% since hitting an all-time high in November.
Bitcoin is giving stock investors a glimpse into the direction of the stock market, veteran investor Mark Mobius told Bloomberg in an interview published Wednesday.
"Cryptocurrencies are a measure of investor sentiment," he said. “Bitcoin falls, the next day the Dow Jones [industry average] falls. That's the pattern you get. This shows that Bitcoin is a leading indicator.”
The co-founder of Mobius Capital Partners and a star investor in emerging markets was speaking as the cryptocurrency market endured a “crypto winter” in which prices struggled to generate or capitalize on sustained gains.
The broader crypto market is valued at less than $1 trillion after hitting an all-time high of over $3 trillion in November. Bitcoin traded around $20,066 on Wednesday, down more than 70% from its all-time high of $69,000 in November.
Mobius said stock market sentiment will only bottom out when sharp losses cause institutional and retail investors to stop pumping more money into the market. "This is the time to start buying stocks," he said.
US stocks have slipped into a bear market as the Federal Reserve hikes borrowing costs to cool the highest rates of consumer price inflation in 40 years. With the Nasdaq Composite down nearly 30% and the S&P 500 down more than 20%, market watchers have been on the lookout for signs that the sell-off has started.
But if bitcoin investors are "still talking about buying dips, it means there's a sense of hope," Mobius said. "It also means that we are not yet at the bottom of a bear market."
Read the original article on Business Insider

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