By : The price will crash again soon because the latest rally was merely a dead cat bounce and not because the ’s fundamentals are strengthening. That’s what Motley Fool blogger Kevin Godbold contends.
In his May 26 , Godbold observed that the price has soared more than 120% between January’s low of $3,400 to its current value of $8,500. However, Godbold attributes that to a dead cat bounce, so crypto fans shouldn’t get too smug.
As CCN reported, a is a temporary recovery after an extended bear market that’s followed by a prolonged downturn. It comes from the adage that “even a dead cat will bounce if it falls fast enough.”
Blogger: ‘bitcoin Looks Riskier Than Ever’
Godbold insists that the recent spike was merely due to speculators who went on a buying spree during its recent crash. However, he says that’s over now since prices have stabilized, so it’s no longer a bargain.
“The buying probably caused the share price to move up. A little at first, but seeing the movement, others maybe started saying, “’s moving” and more buying happened. And because of that, went higher. And the higher it went, the more the momentum speculators piled in. And the more they piled in, the higher moved.
“I think that description is the essence of what causes a dead-cat bounce. Nothing has changed in the case for or against , but speculation happened.
“Sooner or later, the speculators will run out of fire power. and when we reach that point, is likely to plunge again. To me, the up-move looks pretty full, so looks riskier than ever right now, and I wouldn’t touch it with a bargepole.”
The price has rallied recently, but a Motley Fool blogger says it’s going to tank again soon. | Source: WorldCoinIndex
Analyst: Stocks Are Much Better Investment Vehicles Than Crypto
Kevin Godbold admits that he did not foresee the recent rally but says that’s because unlike with stocks, there’s no real data to gauge whether is undervalued, overpriced, or just right. Basically, he says price predictions are merely guessing games given the lack of fundamentals behind .
That’s also what billionaire – that is not a real investment and that buying crypto is merely speculative gambling.
As it is, the Motley Fool — a website that provides financial advice for investors — has generally been anti-crypto. And that makes sense because its business model is stock-centric. And Godbold conceded as much.
“But in fairness, I wouldn’t touch with a bargepole wherever the price is. Instead, I think a much better opportunity for successful speculation and investment exists in shares and share-backed investments.
“I think the stock market is a far better vehicle for the potential generation of wealth than the world of .”
Craig Wright: BTC Will Vanish Because It’s Aiding Crime
Motley Fool bloggers aren’t the only ones who are bearish about . As CCN reported, crypto entrepreneur Craig Wright predicts that “.” Why? Because it has devolved into a tool for criminal activity, notably money-laundering.
“The developers behind are seeking to make the system more friendly to . They are actively building changes that will make more anonymous and take it further away from the path of …I designed to be a system that worked within the rules.”
‘ Will Disappear,’ Craig Wright Rants in Blistering ‘Satoshi’ Manifesto
— CCN.com (@CCNMarkets)
Published at Mon, 27 May 2019 01:32:22 +0000
