Bitcoin continues to struggle to stay above the $20,000 levels. Meanwhile, experts are sharing their thoughts on the next direction of the biggest cryptocurrency. In this article, we will share the expectations of two figures, who are known to be active on Wall Street, for BTC. It is worth noting that these expectations are generally negative. Here are the details…
Jim Cramer no longer defends the Bitcoin and altcoin space
Longtime CNBC host Jim Cramer argues that investors should get rid of cryptocurrencies, NFTs, and special purpose acquisition companies (SPACs). Cramer claims these assets could potentially evaporate investors’ life savings.
Cramer admitted that he was wrong about cryptocurrencies in the latest episode of his hit show “Mad Money.” “I think it’s time we started questioning the fundamentals of crypto,” Cramer says. The famous stock picker also questioned whether CNBC should report on crypto. “There won’t even be any need for them to be quoted on the side of the television screen anymore,” he said. Cramer admitted he was wrong about crypto as it doesn’t perform as a store of value.
Michael Purves is bearish in Bitcoin: Target is $15,000
Tallbacken Capital Advisors CEO Michael Purves said in a recent Bloomberg interview that Bitcoin has been in a bearish trend since January and his stance has not changed. He claims his firm shorted last week with a target of $15,000. According to Purves, Bitcoin’s long-term bullish momentum began to break in late January. The top cryptocurrency is down 55.86 percent year-on-year.
Tallbacken Capital Advisors founder and CEO Michael Purves explains why he turned bearish on Bitcoin.
He speaks with Matt Miller and Kriti Gupta on “Bloomberg Crypto” https://t.co/tmDHPrw5IA pic.twitter.com/zN28kRXkum
— Bloomberg TV (@BloombergTV) August 30, 2022
BTC surpassed $20,000 at the end of December 2020 and then reached new highs in 2021. Purves says the massive rally was driven primarily by institutional investors who started buying the leading cryptocurrency en masse because of its “inflation hedge” narrative. However, Bitcoin has failed miserably as a portfolio diversifier. It has become heavily correlated with the S&P 500 and Nasdaq 100, as noted by Purves.
Due to Bitcoin’s inability to act as a hedge against inflation, Purves is unsure whether institutions will be able to buy from the bottom if the price of Bitcoin drops significantly. Bitcoin has been the worst-performing asset class this month after losing 15 percent of its value. David Kelly, chief global strategist at JPMorgan Asset Management, recently stated that investors have been forced to liquidate their crypto holdings due to the aggressive monetary policy of the US Federal Reserve (FED). The cryptocurrency is currently sitting just above the $20,000 level.
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