Not exact matches
The investment firm, in a note, said the cryptocurrency's price chart is largely mirroring that of the Nasdaq composite
index during the dot - com
bubble.
After topping 6000 in August 2007 on the hype and hope of voracious consumer demand
during the subprime debt
bubble, the Chinese Shanghai Composite
Index collapsed 74 % to 1585 by October 2008.
As you can see in the chart above, the VIX
index moved steadily higher as the market approached the peak of the late 1990s technology
bubble, calmed down
during the steady growth period of 2003 - 2007, then spiked
during the 2008 credit crisis and in the latter half of 2011.
That makes cap - weighted
indexes vulnerable to
bubbles:
during the 1990s, technology companies went from 5 % of the cap - weighted S&P 500 to almost 30 % as their stock prices ballooned, and here in Canada, Nortel alone grew until it made up more than 36 % of the S&P / TSX Composite.
During the Tech
bubble the S&P 500's median P / E reached 23, far less than the
index's overall P / E of 33.
Bitcoin's recent price chart mirrors that of the Nasdaq Composite
Index during the tech
bubble era, but there's a catch.
For comparison, with lending standards most lax
during the height of the housing
bubble in 2006, the
index nearly reached 900.