In particular, Michael Purves, CEO of Tallbacken Capital Advisors, has extended his bearish stand on Bitcoin, noting that the asset’s long-term momentum has started to become shaky, he said during an interview with Bloomberg Technology on August 30. According to Purves, his stance is not guided by the asset’s fundamentals,but the fading long-term momentum puts Bitcoin’s next projection at $15,000.
Bitcoin’s inability to show uncorrelation with equities
Notably, the analyst stated that Bitcoin has since lost its stability, especially with the correlation to the equities market. He started the correlation that emerged with the entry of institutions into the sector. However, based on the current market conditions, Purves questioned the ability of institutions to retain their position in Bitcoin. With Bitcoin proponents maintaining that the asset will grow to become a hedge against inflation, Purves suggested that the asset has not demonstrated this ability. In this line, he added that it’s another reason institutions are likely to stay away from the asset.
Institutions’ interest in Bitcoin
Despite the analyst questioning institutions’ ability to remain in the market, different entities view the correction as an opportunity to invest. As reported by Finbold, the Venture Capital (VC) firm Seven Seven Six, founded by Reddit co-founder Alexis Ohanian is planning to make its first direct entry into the crypto space, aiming to raise a $177.6 million fund. The firm plans to take advantage of the depressed prices to accumulate different assets. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. Watch the full interview below:
