Of the 10 events Birinyi studied, bitcoin was third largest, behind an 18th-century French financing scheme around the development of the Mississippi Valley, known as the Mississippi bubble, and the one-day 31 percent surge in Qualcomm in December, 1999. According to Birinyi Associates, it was a Wall Street analysts call for a $1,000 target that set Qualcomm shares on fire.
“I’ve got to think it is,” said stock market guru Laszlo Birinyi of bitcoin’s bubble potential. “Quite frankly, we’ve traded it a little bit. I don’t mind trading it, but I wouldn’t invest in it on a dare…I would not want to go home with a lot of bitcoin.”
But Birinyi, best known for his stock market calls, says the stock market is not in a bubble, as the Dow surged more than 300 points Thursday. “Look at the stock market. I see measured consistent gains, most of which are rational and some are not but most of which you understand,” he said.