A selloff in cryptocurrencies, high-growth stocks, and other high-flying assets may be signalling a cautious investor outlook after a stretch of rampant speculation and exuberance.

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On Wednesday, Tesla's reversal to accept Bitcoin as a payment and China's stricter-than-usual cryptocurrency curbs put a 30 percent dent in Bitcoin's journey. At one point, the coin was trading at $30,000 — half-level as compared to the early-April-highs of $60,000.

Experts believe the bitcoin may hit $34,000 and even fall to $20,000.

“Looking at the technical charts, it can go to USD 34,000 and below that it can go to USD 20,000. But we don’t know because everyone is just staring at charts,” Peter Boockvar, CIO, Bleakley Advisory Group told CNBC-TV18 in an interview.

While analysts, for now, can rely only on technical charts in the case of speculative cryptocurrencies, their outlook on gold and silver is bullish. It is worth noting here that Bitcoin at one point aspired to become a hedge against inflation, like gold.

“I am very bullish on gold and silver. They have been in the corrective phase since the last August. I think gold is still going to be a beneficiary,” he added.

Gold prices climbed higher on Thursday, aided by growing US inflationary pressure, and analysts believe inflation is now very ingrained. The gold, however, seems to be in a tug-of-war — it gets pulled lower by stronger dollar and uptick in US 10-year rates and is then pulled higher by inflation.

But other growth and speculative assets are not in the midst of any tug-of-war. It is clear they are plunging. Boockvar says the market is seeing signs of the short-term top in equities, combined with rotational corrections.

For full interview, watch the video.

(Edited by : Yashi Gupta)

First Published:May 20, 2021 3:23 PM IST