If you traded the internet bubble back in 1999-2000, the action in the cryptocurrencies and blockchain-related stocks should bring back some memories. This is what it felt like.
Traders are beating the bushes looking for anything with a connection to the group. Longfin (LFIN) has traded up more than 12-fold in a matter of days. Document Security Systems (DSS) has doubled today, following news that it has trademarked the word "AuthentiChain."
While this frenzy is much narrower than the internet bubble, as far as the stock market goes, it has similar level of hysteria. There were many more big-caps that were caught up in internet frenzy such as Yahoo and Amazon (AMZN) , but the action was not much different.
Over the years since the bottom in 2008-2009 there have been many pundits that have tried to draw parallels to that top but it has never rung true. There has never been the sort of emotion that we had back then. For the first time in a very long while, people that haven't followed the financial markets are talking about the action.
I don't know how long this bitcoin frenzy can last but it makes me wonder if that top will be a catalyst that helps to create a top in the broader market. Will the disappointment that results when the frenzy finally dies have a negative impact on the overall market? Will this potential top be a bitcoin top just like the top in 2000 was the intranet top?
We shall see how things develop but this sort of action is often one of the conditions for a major top. Whether it develops that way we will have to see. Still, it is major change in the character of the market and should not be ignored as just a minor matter.