That’s what he did Friday morning, and bitcoin is now trading at $37,537.79, up 19%.
So what’s the takeaway from this? Retail investors are in full-throttle manic mode.
But it’s quite another thing to go bonkers over GameStop (GME) - Get Report, AMC Entertainment (AMC) - Get Report, special purpose acquisition companies and bitcoin. It’s all speculation at this point.
Legendary 20th century economist John Maynard Keynes said that investing in the stock market is like judging how others will judge a beauty contest.
In the case of bitcoin, the stocks with weak fundamentals, and SPACs, every judge is rating the asset a perfect 10.
Nothing here is new. Given human nature, bubbles have almost certainly existed since the beginning of time. Adam and Eve may well have sparked a run on forbidden fruit. The 17th century saw the Dutch tulip bubble and the 18th century saw the South Sea bubble.
You’re undoubtedly familiar with more recent bubbles -- dot.com stocks in the late 1990s and the housing market in the early 2000s.
Bitcoin, so-called junk stocks and SPACs are simply a continuation of that line. Markets shift between greed and fear, and right now greed is dominant.
Just remember that periods of greed, in financial markets or any other part of life, generally don’t end well. For the most part, the greedy don’t go unpunished.