The heads of two traditional firms have expressed opposing views on investing in bitcoin
Keith McCulloch, CEO of the analytical company Hedgeye Risk Management, explained on his Twitter why he sold bitcoin, although he believed in growth before, and what could have led his colleagues in the traditional finance sector to the same decision..
The withdrawal of assets of traditional hedge funds from Bitcoin against the background of a sharp deterioration in the global financial system is called one of the factors in the decline in the price of cryptocurrency.
According to McCulloch, he bet on bitcoin, but at some point he was forced to abandon it. “I was bullish on Bitcoin until February, and then I sold it because my risk management process told me to do it,” he wrote..
McCulloch left this remark after one of the commenters mentioned the example of Global Macro Investor CEO Raul Pal. “I cannot express how bullish I see the outlook for bitcoin,” Pal wrote on March 19. – Now we risk losing the entire system. I know they will find a way to save her, but all trust has been lost. The gold guys will be fine too, but Bitcoin has more potential to grow. At the same time, a high degree of risk is associated with it “.
In an interview over the weekend, Pal, former manager of the equity derivatives division of Goldman Sachs, said he expects bitcoin to rally to its previous high of around $ 20,000 within 12-18 months..
McCulloch noted that he should not share Pal’s opinion in everything, as well as love or hate Bitcoin. He puts cryptocurrency on a par with other exchange commodities, such as cocoa and livestock, about which he also tends to change his mind from bullish to bearish and vice versa..
“Why doesn’t anyone discuss cocoa with such passion? Chocolate shows long-term growth! ” – added McCulloch.
Earlier, he also criticized crypto investors for being irrational: “Some crypto bulls are worse than the stock market guys when it comes to understanding risk management of their ‘assets’ volatility.”.