Bitcoin all-time-high approaching – time for a correction?

Bitcoin has seen a huge run up over the past 3 weeks. The price has climbed from $40,800 to its present price of $62,300. Wouldn’t a 50% rise in such a short time have some kind of a consequence? 

The bitcoin price has seen this incredible surge on the back of an approaching approval for a bitcoin futures ETF. Now that this has actually been approved could we see a ‘sell the news’ kind of event? Or, with all the hype surrounding it, could bitcoin such blow through the previous all-time-high, confirm the new support, and just keep going? 

Mark Yusko, CEO of Morgan Creek Capital Management, thinks that investors will take profits due to bitcoin’s recent parabolic rally. He told CNBC yesterday: 

“There are a lot of people that think we could hit $100,000 by the end of the year. The stock to flow model says we should. I also wouldn’t be surprised of a little consolidation. Look, we’re up 40% this month which is only 15 days old.” 

Yusko is very bullish on bitcoin long-term however. He is calling for the number one cryptocurrency to hit $250,000 in five years. In addition, he believes that bitcoin will equal the market cap of gold. 

Gareth Soloway, 20 years + veteran trader, and manager of the Soloway Alpha Fund, says that in his view, institutions and hedge funds have put narratives out there in order to get the price to go up. 

He believes that there is a lot of hype around, and he says that he certainly wouldn’t buy the bitcoin futures ETF as a long-term play, saying that these things historically go down over time. 

In an interview on Kitco yesterday he said that he was thinking to put in a short on bitcoin just below the $65,000 all-time-high price, saying that he would remove it if bitcoin broke through, but that the risk-to-reward was quite impressive considering how much bitcoin had risen already. 

“So the way a trader would trade this, is if it breaches $65,000 it can no longer be compared to past cycles and you have to assume there is further upside. As a trader I would never chase something that’s gone straight from 40 to 65 thousand. What I would do though is then instead of waiting for it to go to 18 to 20 [thousand] I would but it on pull-backs at that point.”  

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.