Wall Street veteran explains bearish outlook for Bitcoin

Crypto Update
3 Min Read

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bitcoin (BTC/USD) is battling downside pressure above $20,000, amid a recent decline below the round figure, as well as a broad selloff in riskier assets.

Michael Purves, CEO of macro research firm Talbacken Capital Advisors, believes that the benchmark cryptocurrency will remain bearish for a long time.

 

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According to him, the long-term momentum of bitcoin has weakened further and the price could reach new lows of $15,000 or less.

bitcoin bearish outlook

 

Purves, explaining his bearish outlook for Bitcoin Told In an interview on Bloomberg Technology Tuesday:


“What really got me bearish was really, again, nothing to do with a fundamentally bearish outlook or a fundamentally bullish outlook. It was just the fact that the longer-term momentum was really coming towards the end of January. and this one particular signal I was focusing on, you know he did it three times before, and each time, bitcoin corrected from 60% to 70%. In the next, Anywhere over a period of four to ten months.”

Purves also noted that the technical picture for the price of bitcoin is showing a bearish signal for growth in January to around $42,000.



He also noted that the continued correlation between bitcoin and equities has led to a decline in 2022. Over the past several months, BTC prices have tumbled along with stocks – the latest being a sell-off last week after US Federal Reserve Chairman Jerome Powell’s Jackson Hole speech.


The head of Tollbacken Capital Advisors also pointed out that prior to the last bull run, bitcoin’s largely uncorrelated trading with the NASDAQ encouraged institutional investors. buy btc – Viewing assets as a hedge and store of value.


However, recent lockstep trading with stocks and bitcoin have not demonstrated the “ability to be uncorrelated”, it may be difficult for new institutional funds to enter the space based on the same “thesis” as in previous cycles. .


,You know if you look at the NASDAQ it’s a pretty clear relationship with rates. And bitcoin has a pretty clear correlation with the NASDAQ here.” He noted.


“And so I really question you because it hasn’t demonstrated its ability to disengage, I question if institutions are going to come and say hey you know it turns 15 or 17 Or turns 18 or twelve whether they’re going to go back to the committee and say here’s a dip we can buy because the thesis three years ago I guess you generally knew it was a As an uncorrelated asset, it can be an inflation hedge.

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