Bitcoin Could Head As High As $150,000, But There’s A Catch
By Todd Gordon
November 9, 2021
Bitcoin’s recent breakout likely has legs, but investors should be cautious with how much of the cryptocurrency they own, says Inside Edge Capital Management founder Todd Gordon.
“I think it should be a part of client portfolios, but a small part,” Gordon told CNBC’s “Trading Nation” after bitcoin hit a new all-time high on Tuesday. “We actually don’t have resistance until about [$125,000] to $150,000, so … I do think it’ll get there.”
Roughly 3% of Gordon’s portfolio is invested in various digital assets. With Apple looking into crypto technology, U.S. mining on the rise as a result of China’s ban and the expansion of the metaverse, the space has several upside catalysts despite its “amazing” volatility, he said.
“I’m bullish, but volatility is so extreme, please be careful and understand what you’re dealing with here,” Gordon said.
Though Federal Reserve Chairman Jerome Powell helped spark the recent rally by saying he was not considering a crypto ban, the Fed could also become one of bitcoin’s biggest headwinds, Chantico Global founder and CEO Gina Sanchez said in the same interview.
“As the economy continues to reopen and the numbers start to heat up, at some point we will see the Fed stepping back” from its massive monetary support, reducing liquidity in the markets and potentially stifling crypto performance, Sanchez said. She is also the chief market strategist at Lido Advisors.
Global central banks looking into creating their own digital currencies could also pose a threat, she warned.
“Central bank digital currencies have the potential to have an edge when it comes to regulation and that’s the big unknown right now with crypto,” Sanchez said. “It can create big winners and losers.”
All things considered, she agreed with Gordon that caution was key.
“If you take a position, it should be a very small one,” she said.
Disclosure: Gordon owns bitcoin.
Trading Nation: Here’s Who’s Best Positioned To Win The EV Race
Inside Edge Capital Management’s Todd Gordon and Chantico Global’s Gina Sanchez discuss the ongoing electric vehicle race and who’s in the best position to win with Tyler Mathisen.
Founder and Lead Analyst of Trading Analysis
Todd has been trading as a career for the last 20+ years. His goal is to not only provide insightful analysis, but to teach people how to think and grow as professional traders. Todd is a practitioner of Elliott Wave Theory and he uses it to gain an edge in the highly competitive trading arena. In addition to trading professionally, Todd has worked as an analyst and researcher at two different hedge funds. Click Here To Learn More about Todd Gordon