Bitcoin is similar to small capitalization stocks

Wolfe Research analyst Rob Ginsberg said that bitcoin's unsuccessful attempts to overcome the $70,000 mark demonstrate the similarity of this cryptocurrency's behavior pattern to the assets of small-cap companies.

Rob Ginsberg highlighted several factors in an interview with CNBC. First, like small-cap stocks, bitcoin is subject to sharp price fluctuations. This is due to its relatively small market and less liquidity compared to the larger assets of the traditional financial market.

At the same time, investing in bitcoin is speculative in nature, as is the case with shares of small capitalization companies. Investors buy bitcoin in the hope of rapid price growth and are guided by short-term goals, rather than making long-term investment decisions based on the fundamental value of the BTC.

Rob Ginsberg added that the price of bitcoin, as well as the prices of small-cap stocks, is highly dependent on the general mood in the market, when positive news can lead to a sharp rise in the price of the asset, and negative news can lead to their fall.

The analyst believes that collectively, these similarities to small-cap stocks could prevent bitcoin from reaching and holding its market value at new all-time highs.

Now the market value of bitcoin fluctuates between $63,300-$64,780. BTC lost about 1% of its initial value over the day.