Bitcoin is already showing “signs of exhaustion”, says Forbes researcher
Forbes research director of digital assetsSteven Ehrlich is identifying some “signs of exhaustion” around Bitcoin. In a conversation with reporter Jill Malandrino at the “Nasdaq Trade Talks Show”, he explained the reasons behind the current price correction for the largest cryptocurrency on the market.
In addition, he commented on the growth of the Non-Fungible Tokens (NFTs) sector and its impact on the Ethereum network.
“Our Director of Research Steven Ehrlich joined Jill Malandrino on Nasdaq Trade Talks to discuss if short-term signs of exhaustion are starting to appear with bitcoin and how investors should approach the NFT craze:”
Our Director of Research @Steven_Ehrlich joined @JillMalandrino on @Nasdaq #TradeTalks to discuss if short-term signs of exhaustion are starting to appear with #bitcoin and how investors should approach the #NFT craze: https://t.co/Z6UuEp2yPc
— Forbes Crypto (@ForbesCrypto) March 25, 2021
Regarding Bitcoin’s correction, which has fallen by about 13% in the last 7 days, Ehrlich said the reasons are diverse. As noted by the director, BTC has risen about 83% so far in 2021. But, in the last 30 days – a period in which it recorded its historic high of $61,711, it decreased by approximately 3%.
At the time of writing, Bitcoin is trading around $54,000.
First, Ehrlich highlighted the fact that some institutional investors, who have recently bought, are selling BTC to realize their profits. He also noted that Bitcoin is currently being traded more as a risky asset than a hedge or store of value.
Anyway, Ehrlich said that he remains optimistic about Bitcoin in the medium and long term. However, in the short term, he believes Bitcoin will show side trading periods. The research chief also did not rule out a longer correction period.
He also said that Ethereum outperformed BTC last year. Now, in 2021, ETH continues to perform better than BTC.
After all, ETH has already appreciated 132% this year. However, he reasoned that Ethereum is now following a bearish pattern similar to that of BTC, but he emphasized that the cryptocurrency is still going well. He explained that his optimism is due to the fact that institutions continue to show interest in ETH.