Can it be said that now is the best time to invest in Bitcoin? Traders and investors are already looking at the medium term, expecting that the price of bitcoins will move to critical levels in the coming weeks.
Prerequisites for growth
If the bitcoin price exceeds the $ 10,000 mark, given that bitcoin is gradually rising in the last three weeks without significant surges, it is likely that bitcoin will continue to increase its rate to $ 12,000.
Brian Kelly, investor a contributor to CNBC’s Fast Money, said that the price of bitcoins would continue to grow in the short term, since
MORE AND MORE BANKS, SUCH AS GOLDMAN SACHS, START TRADING BITCOin FUTURES ON BEHALF OF THEIR CUSTOMERS
Moreover, as recently reported by the non-profit organization Coin Center,
THE GOVERNMENT SPECIFIED THAT BITKOiN DOES NOT BELONG TO SECURITIES
convincing investors that trading bitcoin as a currency and an asset does not require the approval of the SEC.
“It’s a complicated area. Because, as you said, there are different types of crypto assets. Let me try and divide them into two areas. A pure medium of exchange, the one that most often cited, is Bitcoin. As a replacement for currency, that has been determined by most people not to be a security,” said SEC chairman Jay Clayton.
But despite the confident growth of the cryptocurrency and in particular bitcoin, not everyone is so optimistic.
Nick Colas, Wall Street guru and former chief market analyst of brokerage firm Convergex, urged investors to think twice before entering the cryptocurrency, despite the recent market rally, in an interview with CNBC on May 4.
Colas has a well-established reputation among Wall Street professionals, for 14 years author of the favorite Morning Markets Convergex’s Briefing. He denied the idea that after the market crash at the beginning of the year, now may be a suitable moment for investors: “A lot of people asking now the right time to buy, and the short answer is no, for two fundamental reasons. The first is
we’re not seeing a lot of incremental engagement from people interested in buying Bitcoin for the first time
and like any new technology you need new adopters to come in to make it more valuable. And in terms of Google searches, they are way down from the peaks back in December and January, 85 to 90 percent.”
Colas added that he is concerned that there is currently a relatively small increase in the number of wallets, and last month only 2.2% more people opened Bitcoin’s new wallets to buy cryptocurrency, in contrast to the 5-7% monthly growth that recorded for the whole of last year.
When asked whether there were last year’s growing market assessments proving that Bitcoin is a bubble, Colas replied:
“Certainly in retrospect, it was absolutely a bubble based around the Futures launch in December. Since 2013, fundamentally believe in the [Bitcoin] structure of the technology and the story, but it obviously has huge price volatility around it, and we’ve seen that even in the past month with rallying as much as it has.”