Is The Bitcoin Bubble Going To Pop? Dennis Gartman Thinks So
(Kitco News) - After two days of selling pressure, one famed investor says the bitcoin bubble may be ready to burst.
Dennis Gartman, editor of the Gartman Letter, has little love for the digital currency and is now wondering, after nearly 600% gains since the start of the year, if it is ready to change course.
According to Kitco’s aggregated charts, Bitcoin last traded at $6,993.80, down more than 7% from its recent highs above $7,550.
“Our antipathy toward Bitcoin specifically and toward the crypto-currencies generically is widely known but [Monday’s] action does look like a ‘reversal’ to the downside…finally,” he said in his note Tuesday.
However, selling pressure is up against significant bullish momentum and market attention. According to Google Trends, “buy Bitcoin” has surged in the last week as prices pushed through $6,000 and then $7,000.
Gartman is not the only one who is questioning bitcoin’s strength. Analysts at ETF Securities warned that investors looking for a store of value might want to look at other assets other than Bitcoin and cryptocurrencies.
They noted that because of Bitcoin’s surging popularity, it is seen a new store of wealth in the same league as gold, real estate or other real assets.
“Bitcoin’s limited track-record and high volatility should certainly bring caution to those classifying it as a store of value,” the analysts said. “Since 2010, Bitcoin’s annualized daily volatility has been 15 times more volatile than the US dollar, 7 times more volatile than the price of gold, and 3 times more volatile than the price of oil.”