Wall Street Analyst Urges Caution in Bitcoin Trading

| Publish date: 05/07/2018
Share

A Wall Street analyst by the name of Nick Colas wants investors to avoid Bitcoin as much as possible. Colas, the co-founder of DataTrek Reseach, pointed out lacklustre fundamentals surrounding what he describes the “FANG stock of the crypto world.” FANG is basically Facebook, Amazon, Netflix, and Alphabet’s Google, and it is considered the highest flying – and even most widely held – tech stocks.

 

In an interview, Colas admitted that Bitcoin has indeed come a long way and that more people are asking is now the right time for them to buy. However, he does not believe that now is the right time for investors to buy.

The Numbers

It is worth noting that the number one digital currency has managed to rally up to $9,700 from a low around hit which is $6,400 in the past month. And last December, it hit a record price of around $20,000. But for Colas, it was nothing but “a bubble” that is based on the future launch in the said month. He added that “a lot of enthusiasm” could also be contributed for the digital asset. Interestingly, Colas revealed that he owns a cryptocurrency basket that is worth $2,000.

Colas, the first Wall Street analyst to cover Bitcoin, continued that fewer people are now interested in buying the cryptocurrency. And this the first time in history, as Google search and Blockchain wallet growth trend lower than before.

Determining the Reasons

It holds true that, in terms of Google searches, Bitcoin’s popularity has gone down from the peaks. This is according to a data suggesting that the drop happened between December and January, and it is around 85 to 90 percent. In addition, Colas said that there has not been a lot of wallet growth, with numbers pointing to 2.2 percent last month. And from last year, it only managed to accumulate 5 to 7 percent per month.

Colas is optimistic, however, that this can all be changed. He believes that the key is merely real world adaptation, one that does not just involve ETFs or any trading desk. He simplifies the idea by comparing it to a brand new technology, which needs new adopters in order to make it more valuable on the market.

If Bitcoin manages to achieve this, Colas is confident that there will be a much solid and higher trek. From there, interest will start to re-engage. So, for now, it is all about being a waiting game, and it is the kind that investors have to play for three to five years, he said.

Share

Related Posts

ConsenSys Names Latest Blockchain Startups For Accelerator...
ConsenSys Ventures has finally selected its 10 blockchain startups…
Verv Partners With Ocean Protocol
UK-based green energy startup, Verv, is partnering with the…
TMS Network (TMSN), Fantom (FTM), and Optimism...
When you measure things in the short term, just…

Leave a Comment