- Micheal Purves, CEO of Capital Advisors turns bearish on Bitcoin.
- Purves justifies his reason for holding a bearish stance in a recent interview.
- According to the CEO, Bitcoin fails to act as an inflation hedge.
Tallbacken Capital Advisors CEO Micheal Purves declares that he is bearish on Bitcoin. Purves stood firm on his bearish view ever since January when Bitcoin lost its bullish momentum. The financial analyst also suspects it could drop to $ 15,000.
Speaking to Bloomberg, Purves further explained the reason for his bearish purview on Bitcoin.
What really got me bearish was really, again, nothing to do with a fundamentally bearish view or a fundamentally bull view. It was simply the fact that longer-term momentum was really starting to break in in late January.
Further expressing his opinion, Purves said that he had noticed Bitcoin correct 60% to 70%
within a time period of four to ten months complementing his bearish view.
Purves explained that bitcoin which is floating around the $20,000s was soaring at $65,000+ at its all-time highs during 2021 since institutional traders were buying the flagship currency because of the inflation hedge. Nonetheless, Bitcoin let them down as a portfolio diverse with its inability to act as an inflation hedge and keep its value.
Founded in July 2019, Tallbacken is led by Michael Purves. The financial leader also took up C-Suite positions in several prominent firms in the US. He was the Chief Global Strategist and Head of Derivatives Strategy at Weeden & Co, an institutional broker-dealer. Purves also held similar positions at BGC and Pali Capital. Moreover, Purves also spent the first 12 years of his Wall Street career working in investment banking.
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