Nick Colas, the first Wall Street analyst to extensively cover Bitcoin, has recently warned cryptocurrency investors that now isn’t the best time to buy, despite the recent rally. Colas, a well-established analyst, justified his position with two main reasons.
While speaking to CNBC, the Wall Street analyst explained that we’re not seeing a lot of incremental engagement with Bitcoin, something he argues the cryptocurrency needs to make it more valuable. Per Colas, the amount of Google searches for the flagship cryptocurrency are “85 to 90 percent” down from their December peak.
Moreover, he argued that people aren’t opening a lot of new Bitcoin wallets to buy. According to him, the cryptocurrency only saw a 2.2 percent wallet growth last month, as opposed to the 5-7 percent monthly wallet growth it had last year.
These factors saw Colas state:
“We’re getting a lot of people asking: Is now the right time to buy? And the short answer is no…”
CNBC then asked the Wall Street analyst if the cryptocurrency was in a bubble that popped. Colas replied that “in retrospect it was absolutely a bubble based around the Futures launch in December.”
Adding that he’s been covering Bitcoin since 2013, he noted that his firm, DataTrek Research, fundamentally believes in the “structure, the technology, and the story.” That being said, the price volatility isn’t helping.
Colas’ views are opposed to those of other Wall Street analyst and cryptocurrency experts. As covered, Fundstrat Global Advisors’ Tom Lee believes Bitcoin will hit new highs in July, and sees it hit $25,00 by the end of the year. Further, Lee sees the cryptocurrency hit $91,000 by March 2020.
Mati Greenspan, a senior market analyst at eToro, has also recently revealed he sees Bitcoin heading toward new highs, while arguing the 2018 market drop was “normal.”