Sign up to receive our Newsletter.
Your Privacy is protected.
Motley Fool Blogger Takes a Bear’s Stance on Bitcoin? In a recent post on Yahoo Finance, Bitcoin’s rally will be short lived according to one crypto blogger. Kevin Godbold covers the crypto industry for Motley Fool. He contends that the price of bitcoin (BTC) will once again crash. He refers to the current rally as a ‘dead cat bounce’. He does not believe that the cryptocurrency’s fundamentals are improving to a stronger position.
In a post from May 26, he noted the 120 percent jump in price of BTC. The low was in January at $3,400. The current value heading into the end of May is $8,700. However, this is where the dead cat bounce theory takes hold. This refers to a temporary recovery after a value has been stuck in a bear market for an extended period of time. The forecast calls for another prolonged slide in value. This hinges on the idea that if a dead cat falls fast enough it will bounce.
The blogger goes onto add that the spike in value is pure speculation. Investors have gone on a buying spree to drive up the price. There is nothing tangible behind BTC to sustain its elevated value. In a direct quote Godbold stated:
“The buying probably caused the share price to move up. A little at first, but seeing the movement, others maybe started saying “bitcoin’s moving” and more buying happened. And because of that, bitcoin went higher. And the higher it went, the more the momentum speculators piled in. And the more they piled in, the higher bitcoin moved. I think that description in the essence of what causes a dead-cat bounce. Nothing has changed in the case against bitcoin, but speculation happened.”
He went on to add:
“Sooner or later, the speculators will run out of fire power, and when we reach that point, bitcoin is likely to plunge again. To me, the up-move looks pretty full, so bitcoin looks riskier than ever right now. And I wouldn’t touch it with a bargepole.”
Unlike stocks, there is no real data to support whether or not BTC is undervalued, overpriced or trading at the proper levels.
Bitcoin is the No.1 way to fund your betting account at BetAnySports Bitcoin Casino & Sportsbook and all deposits and withdrawals have no transaction fees. Reduced juice options with -105 betting odds as well as the fastest payouts in the sports betting industry make BetAnySports the top online sportsbook for US players.
Previous New Article: