Think the early 2023 stock-market rally is built on a solid fundamental foundation? Bitcoin’s gains say otherwise, argued analysts at Richard Bernstein Advisors, in a Monday note.
“Some have argued that the year-to-date rally in more speculative issues is a fundamental shift from value to growth. The near-50% year-to-date rally in bitcoin and other cryptocurrencies leads us to strongly doubt that is the case,” they wrote. In the note, the analysts dismissed the idea that there’s a fundamental reason for investors to bid up growth stocks and pointed to the crypto rally as a proxy for what they see as what’s likely to be a short-lived bout of speculative activity. Bitcoin BTCUSD has rallied more than 40% in the year to date, shrugging off a regulatory crackdown on the crypto industry by U.S.