Bitcoin, stocks and the fear of missing out

A series of gains raises investor confidence that they will last indefinitely

Bitcoin has been on an unbelievable run. The cryptocurrency is up around 124 per cent for 2017. And that’s after it gained 125 per cent in 2016. In May alone, it’s up more than 60 per cent. It’s hard to know what the long-term impact or performance will be, but one thing’s for sure — investors are swept up in cryptocurrency mania.

One simple theory for Bitcoin’s vertiginous rise in recent weeks is that it’s turning into something of a self-fulfilling prophecy. Momentum begets momentum and buying begets buying when gains begin to come hard and fast.

Consider that Bitcoin’s price is