Todd Gordon, founder of Inside Edge Capital Management, says that Bitcoin (BTC)’s latest breakout is most likely the first step, but investors should be mindful of how divergent they are to cryptocurrencies.
Todd Gordon: We don’t have a resistance up to $150,000 in Bitcoin (BTC)
“I think it should be part of client portfolios, but a small part,” Gordon told CNBC’s “Trading Nation” after Bitcoin hit ATH levels on November 9 and 10. At the same time, Gordon adds that Bitcoin can reach 6-digit prices:
Actually, we don’t have a resistance between $125,000 and $150,000, so… I think it’s going to get there.
Todd Gordon dedicates about 3% of his portfolio to cryptocurrencies
Saying that he allocates 3% of his portfolio to cryptocurrencies, Gordon says that while Apple is researching crypto technology, mining is concentrated in the US as a result of the China ban and the expansion of the metaverse, and despite the “surprising” volatility of its market, it has several upstream catalysts:
I’m bullish but the market is extremely volatile, please be careful and understand what you’re dealing with here.
Chantico Global founder and CEO Gina Sanchez said in the same interview that the Fed could become one of Bitcoin’s biggest headwinds, even though Federal Reserve Chairman Jerome Powell helped ignite the latest rally by saying he wasn’t considering a crypto ban. Sanchez, who is also chief market strategist at Lido Advisors, thinks that future Fed decisions will negatively affect the cryptocurrency market:
As the economy continues to reopen and the numbers start to warm up, we will at some point see the Fed step back from massive monetary support, reducing liquidity in the markets and potentially suffocating crypto performance.
Sanchez also warns that global central banks trying to create their own cryptocurrencies could also pose a threat:
Central bank cryptocurrencies (CBCD) have the potential to have an edge when it comes to regulation, and that’s the big unknown about crypto right now. It can create big winners and losers.
All things considered, Sanchez agreed with Gordon, who owns Bitcoin (BTC), that vigilance is key. He thought small positions were safe at Sanchez:
If you take a position, it must be a very small position.