How is bitcoin measuring up lately?
How Is Bitcoin Doing, and How Will It Continue to Do?
Despite a few price drops over the past two weeks, the currency, by comparison to where it stood just a year ago, is doing extremely well. The asset began its meteoric rise in April of this year, spiking well beyond the $5,000 point during that month and continuing its jumps into higher territory ever since.
However, when something becomes really rock solid like that, many members of the public may feel a little too inclined to get involved. This is exactly what former hedge fund manager Mike Novogratz says is happening with bitcoin.
In a recent interview, Novogratz compared bitcoin to the “Beyond Meat” hype that occurred roughly two months ago. The company – which sought to reduce the amount of meat consumption in America by introducing users to plant-based substitutes such as soy products – ultimately did quite well in the beginning. People bought the hype, believing that the products being marketed were healthier and safer for their bodies.
However, it’s probably safe to say that too many individuals became involved, and when too many people purchase stakes in a company like that, it’s likely to become “too heavy” with the influence of its investors. The company held an IPO in May of this year. During that time, stocks hit a new high of more than $208 per share. That’s a 70 percent increase from where they stood before.
Unfortunately, stocks have begun to stumble badly following the announcement of a secondary IPO, in which stock will be offered at approximately $160 per share. This is a discount of nearly 20 percent, and stocks are now trading for approximately $30 less than where they stood before.
Is it possible the same thing is happening with bitcoin? After all, the currency nearly rose to $14,000 in late June, but has since continued to stumble further and further south, ultimately hitting the $9,400 mark – it’s lowest position in more than a month. Novogratz thinks that bitcoin suddenly became intriguing to everyone again. Everybody bought in, and now the currency is struggling to maintain its position under all that “investor weight.”
Where Will This Lead?
Beyond Meat reminds me a little bit of crypto… You get great bubbles on big ideas. This is a great bubble… Everyone gets sucked in… All the young guys on their Robinhood accounts are buying this. This is their crypto.
Novogratz doesn’t go into detail about what path he sees bitcoin taking in the coming weeks or months, but we can likely assume that the currency will stay as it is for some time. To incur such a heavy rise would no doubt require a lengthy correction of sorts, which is exactly what bitcoin seems to be doing as of late.
The post Mike Novogratz: Bitcoin Is Like the Beyond Meat Boom appeared first on Live Bitcoin News.