Analyst warns on overvalued tech stocks

Wall Street veteran and 'The Big Bitcoin Book' author Fred Krueger has a stern warning for investors in the traditional finance (TradFi) industry. Krueger wrote on X on May 9 that it is high time that traditional investors begin to buy Bitcoin, as the value from investing in the tech sector has been dipping. In fact, there is little time left before Bitcoin is worth more than any equity, he added.Dear TradFi investors,For the last 15 years, you have done really well by holding QQQs and just betting on the American Tech Machine.Other than the Mag7, your results have been mediocre.And these names are now trading at PEs of 35, and about to hit a wall of protectionism....— Fred Krueger (@dotkrueger) May 9, 2025The analyst further said that traditional investors have been betting on QQQ — the Nasdaq 100 index — for the past 15 years. Other than the Magnificent Seven, the result of betting on the "American Tech Machine" has proven to be mediocre, he explained.The analyst said that these stocks are now offering price-to-earnings (P/E) ratios of 35. It means investors are paying $35 for every $1 of a company's earnings — hardly worth it. Even these stocks are about to hit "a wall of protectionism," he added. Krueger urged investors loaded on tech stocks to opt for Bitcoin. He, however, rued that most of the investors won't buy it, and those who buy the king coin won't buy enough of it.On May 8, Bitcoin's price surpassed the $100,000 level for the first time since early February. Its price neared $105,000 on May 10 as the U.S.-China tariff talks began in Switzerland.Krueger predicted that Bitcoin's price will move from $110,000 to $150,000 quickly. Note that its record high is $108,786, which it hit on Jan. 20. As per Kraken's price feed, the cryptocurrency was trading at $104,025 at press time.