Tesla hits new high! Galaxy Digital founder Michael Novogratz: Speculative bubble, just like Bitcoin in 2017

The founder of the famous cryptocurrency fund Galaxy Digital, Michael Novogratz, was interviewed the day before (11) and advised retail investors to exit before the market crash as the US stock market continues to hit new highs, which he believes has become detached from reality.

In an interview with Bloomberg TV, Michael Novogratz stated, "We are in an irrational exuberance. This is a bubble."

He further commented that despite the economic downturn, slowing growth, and staggering through the pandemic, the technology stock market continues to reach new highs every day. This is a typical speculative bubble.

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Novogratz's statement is backed by the fact that despite the impact of the pandemic on the United States, with skyrocketing unemployment rates and the closure of well-known companies, the IMF's pessimistic view on global economic contraction persists. However, the Nasdaq 100, which covers the top US technology stocks, has even surpassed pre-pandemic highs, reaching unprecedented new peaks.

Novogratz: Similar to Bitcoin in 2017

Novogratz stated that the recent surge in tech stocks reminded him of Bitcoin in 2017, when retail investors flocked in and drove the price from $8,000 to $20,000 within a few months before it crashed.

Novogratz admitted missing out on investing in these tech stocks as he mostly focused on Bitcoin and gold, which also benefited from the soaring stock market.

Retail Investors May Be Overestimating Tesla's Value

Novogratz expressed concerns about the dangerous growth valuations of tech stocks, especially. He said, "Any news about Zoom, Tesla, or Beyond Meat, and people rush into the market. It makes me very worried."

Even Tesla's CEO, Elon Musk, has acknowledged that Tesla's stock price is too high. Recently, many Wall Street analysts have issued warnings, stating that Tesla's stock price does not align with its actual profits, posing significant risks.