On Monday, Bitcoin slipped back below $50,000 after reclaiming it over the weekend.
By afternoon, the cryptocurrency was trading about $49,400, still below its April high of $64,000.
The last week has seen an increase in adoption. PayPal announced Monday that it will allow crypto trading on its UK platform, and Coinbase announced last week that it will buy $500 million in cryptocurrencies.
Bill Baruch, CEO of Blue Line Capital, is a bitcoin bull but not yet.
“I think it belongs in your portfolio, but is $50,000 the right price? He warned CNBC’s “Trading Nation” not to chase it.
BTC went below $30,000 during the summer. Recent weakness linked to a regulatory crackdown in China that prompted several mining operations to close. It’s up 73% since June’s low of $28,600.
Baruch told CNBC he holds bitcoin but started selling it as it hit $45,000 — around the same as its 200-day moving average and a 50% retracement level between its April high and June low. He suggested if bitcoin falls to that level, it may be an entry point.
“I think it’s a terrific environment to be in, but don’t chase $50,000 headlines. “Pick your positions and play your game,” he continued.
Tocqueville Asset Management’s John Petrides says there’s more to the bitcoin rally than just the asset itself.
“From a long-term investing perspective, there are two ways to look at this space: cryptocurrencies as an asset class and blockchain investment. “Blockchain provides a lot of value for our team, from a long-term theme perspective,” Petrides stated in the same interview.
He uses the ETHE Grayscale Ethereum Trust to play in this market, which only invests in the Ethereum open source blockchain and mimics its value. It’s up 105% this year.
This, in turn, will increase activity on the blockchain, which is the largest open source blockchain. “As the world advances to more non-fungible tokens, NFTs,” Petrides added.