Amid Bitcoin Price Drop, Crypto Analyst Foresees Sustained Rally
The bitcoin price cratered this weekend, but the bull market is just getting started. That’s the assessment of crypto blogger Willy Woo, who says the downturn is merely a transitional phase before things start heating up again.
‘Long, sustainable bull drive’ to 2020
Woo, a partner at cryptocurrency hedge fund Adaptive Capital, says the latest market drop is laying the foundation for a sustained rally. “Fomo complete, stage set,” he tweeted.
“Stage 1 of the bull market is completing. Once we bottom, stage 2 begins, promising the long sustainable bull drive that takes us through all of 2020 (if BTC continues its personality). Stage 1 was trader-driven dominance squeezing us up and driving fomo.”
Stage 1 of the bull market is completing, once we bottom stage 2 begins promising the long sustainable bull drive that takes us through all of 2020 (if BTC continues its personality). Stage 1 was trader driven dominance squeezing us up and driving fomo. Fomo complete, stage set. https://t.co/zOHDHQBE9o
— Willy Woo (@woonomic) July 28, 2019
Willy Woo: Institutional investors are already here
Woo was following up to a prior tweet, where he claimed that institutional investors have already started investing in crypto.
The analyst believes this trend — coupled with the recent market volatility — is setting the stage for another bitcoin bull run.
To Peter’s points, institutional investors are already coming in, I do not believe they are suckers by virtue of needing to understand risk management. The data I see is that old hands (via UTXO age) are distributing coins over time, the capital inrush is more than enough. https://t.co/gQf8mwY1Rd
— Willy Woo (@woonomic) July 28, 2019
Progress (and success) is never linear
Like other bitcoin bulls, Woo is undeterred by the latest erratic crypto price movements. Why? Because progress is never linear.
In business — as in life — things rarely move up (or down) in a constant trajectory. Crypto believers understand this.
Your path is not linear.. There will be ups and downs.. But remember: you learn from your successes AND failures !!! pic.twitter.com/fEvLO3b6sy
— Jeff Olson (@JeffOlson_) January 2, 2017
Warren Buffett acolyte: Bitcoin is the ‘single best financial hedge’
Willy Woo echoed the exuberance of venture capitalist Chamath Palihapitiya, a self-proclaimed “disciple” of billionaire Warren Buffett, a noted bitcoin hater.
As CCN reported, Palihapitiya says bitcoin is the best financial hedge you can have against an uncertain world economy.
This is why Palihapitiya believes you should buy some bitcoin: to protect yourself in case of a global economic downturn.
“It’s the single best hedge against the traditional financial infrastructure. This is the schmuck insurance you have under your mattress.”
VC boss: Don’t be scared by bitcoin price volatility
Palihapitiya, a former senior executive at Facebook, is the founder of Social Capital, a private equity fund based in California.
In 2013, Palihapitiya and his Silicon Valley tech pals once owned 5% of the entire float of bitcoin. He first bought bitcoin years ago, when its price hovered at $100.
The venture capitalist joins a growing chorus of crypto evangelists who say that despite bitcoin’s volatility, it’s not a bad idea to invest a little in it.
Palihapitiya’s optimistic outlook on crypto is a stark contrast to his hero Warren Buffett, who blasted bitcoin as “rat poison squared.”
Buffett has also repeatedly torched all cryptocurrencies as worthless, speculative gambling. Moreover, he predicts that crypto will eventually come to a bad end.
Finance professor: Bitcoin is a terrible hedge
Dimitrios Koutmos, an assistant finance professor at Worcester Polytechnic Institute, agrees with Warren Buffett. Koutmos says bitcoin is a horrible hedge against a volatile stock market or an uncertain economy.
In his report “Market Risk and Bitcoin Returns,” Koutmos sounded the alarm for the irrationally exuberant cryptocurrency investor.
Koutmos says his research indicates that the bitcoin price is not as independent of external influences such as stock market movements and geopolitical uncertainty as crypto evangelists claim.
Therefore, Koutmos advises against buying crypto as a hedge against a potential recession as the global economy shows signs of slowing down.