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Bitcoin is directing stock investors into where the equity market is headed, veteran investor Mark Mobius told Bloomberg in an interview published on Wednesday. 

"Cryptocurrencies are a measure of investor sentiment," he said. "Bitcoin goes down, the next day the Dow Jones [Industrial Average] goes down. That's the pattern you get. That shows that bitcoin is a leading indicator." 

The co-founder of Mobius Capital Partners and a well-known investor in emerging markets commented as the cryptocurrency market has been undergoing a "crypto winter" with prices plummeting to months low.

The broader crypto market wiped off $2 trillion in valuation after hitting all-time highs above $3 trillion in November. Bitcoin was trading around $20,066 on Wednesday, down more than 70% from its all-time high of $69,000 in November.

Mobius said “sentiment in the equity market hits rock bottom only when institutional and retail investors stop plowing more money into the market because of sharp losses. That's the time to start buying stocks,” he said.

US stocks have plummeted into a bear market as the Federal Reserve increases borrowing costs to tame the highest rates of consumer price inflation in 40 years. With the Nasdaq Composite falling nearly 30% and the S&P 500 plunging more than 20%, market watchers have been on the lookout for signs the sell-off has run its course.

But if bitcoin investors "are still talking about buying on dips, that means there is a feeling of hope," Mobius said. "That also means that we have not reached the bottom of a bear market."