Don’t believe the ‘doom mongers,’ says bitcoin analyst
Bitcoin prices have picked up where they left off last week, trading higher Monday.
After an early-August selloff, bitcoin and major digital currencies, have, for the most part, righted the ship. For one financial consultant, the decline is over, and it’s onward and upward from here.
“Despite what the doom mongers would want you to believe, the recent selloff was only ever going to be temporary and prices were bound to rise again relatively quickly — as they are now doing,” wrote Nigel Green, founder and chief executive of deVere Group in an email to MarketWatch.
“Previous to this selloff, in recent weeks bitcoin had experienced a pretty impressive rally, peaking at around $8,300. As such, what happened over the last [two weeks] was simply a standard crypto market correction,” he said. Bitcoin is 14.5% off its August low set on the 14th but remains down more than 13% for the month to date and is off more than 51% since the end of last year.
Green added that sharp rises and declines are par for the course for digital currencies.
In Monday trading, a single bitcoin BTCUSD, +0.76% last changed hands at $6,733.54, up 0.8% since Sunday at 5 p.m. Eastern on the Kraken exchange.
Former con-artist Jordan Belfort warned investors that bitcoin is going to “slaughter” some really honest investors. Speaking to CNBC, the convicted felon, who served 22 months in prison for market manipulation and penny-stock scam when running Stratton Oakmont, said bitcoin will be “the bust that’s heard around the world.”
This is not the first time Belfort has warned investors about betting on bitcoin. In a June YouTube video he said bitcoin could go to zero, adding that the market is operating on the Greater Fools Theory, where the price of an asset is not based on intrinsic value but irrational behavior.
Smaller digital currencies, known as altcoins, are moving higher Monday, too.
EtherETHUSD, +1.93% the largest altcoin, is the best performing of the majors, trading up 1.9% at $277.47. Elsewhere, Bitcoin Cash BCHUSD, +1.96% is up 1.8% at $530.10, Litecoin LTCUSD, +1.81% is up 1.8% at $57.82, and Ripple’s XRP coin XRPUSD, +1.46% is trading higher by 1.7% at 33 cents.
The broad-based rally has dragged the total value of all cryptocurrencies back toward $220 billion, according to data from CoinMarketCap.
Bitcoin futures are trading higher Monday. The Cboe Global Markets Inc.’s September contract XBTU8, +1.78% has gained 1.9% at $6,730, while the CME Group Inc. August contract BTCQ8, +1.66% is up 1.7% at $6,725.
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