In a current interview with Bloomberg, Michael Purves got here ahead to say that he had a extremely bearish outlook on Bitcoin, which has been on since January.
He additional claimed that final week, his firm made a brief guess with a goal of $15,000.
On analyzing the present market downtrend, Purves acknowledged that the long-term optimistic pattern for Bitcoin started to weaken in late January, probably as a result of the highest cryptocurrency skilled a year-to-date decline of 55.86%.
The most recent pattern reveals that beforehand, Bitcoin had shot past the $20,000 threshold, and continued to soar in 2021, setting new information. Purves claims that the “inflation hedge” narrative led institutional buyers to start out buying the main cryptocurrency in massive portions, which is what principally drove the numerous rally.
Bitcoin, in the meantime, has completely didn’t diversify its portfolio. It has a robust correlation with the S&P 500 and the Nasdaq 100, as reported by Purves.
“Over the previous 12 months, we’ve found that Bitcoin will not be uncorrelated. It has been related,”
Purves questions if establishments will step as much as purchase the dip if the worth of Bitcoin declines noticeably as a result of it can’t function an inflation hedge.
