Bitcoin’s performance over the past few days has left some investors fearing a possible price retraction. It doesn’t help that media outlets are covering the event with significant intent. However, Dermot McGrath, head of research at blockchain investment firm Sino Global Capital, is staying resolute in his support for BTC.
Unnecessary Headlines Causing Panic
McGrath had responded to a Twitter post on the Chinese government seizing about $4.2 billion from the notorious Ponzi scheme PlusToken. Rumors had swirled that Beijing could sell the tokens on the open market, essentially causing the Bitcoin price to dip even further.
hmm my interpretation was *mostly* sold but yes, there’s no need for FUD, agree https://t.co/NAq5iSRoXz
— Matthew Graham (@mattysino) November 27, 2020
As the research expert explained, most of the Bitcoins had already been sold. He also asked that investors be persistent in their Bitcoin support as there is no need for FUD.
Speaking in a further interview with Cointelegraph, McGrath explained that traders would need to look beyond mere headlines. He highlighted that the industry is on a forward professionalism trajectory, and investors will need to stay bullish in the long term.
McGrath is the second notable figure to come out in defense of Bitcoin in the past few days. On Friday, Mark Yusko, the President of investment firm Morgan Creek Asset Capital Management, criticized Bitcoin’s negative coverage in the face of the asset’s sharp decline on Thursday.
The Traditional Space at Work
As Yusko explained, most of these negative headlines were perpetrated by actors in the traditional financial space. They have noticed the growing adoption of the leading cryptocurrency, and they were now looking to slow things down. Yusko’s thread also contained insights on incumbents’ tactics looking to slow innovation that they believe to be threatening. Now that government regulation isn’t viable since the government is yet to recognize Bitcoin, media appears to be ideal.
Summarizing, Yusko claimed that only peculators could be deterred from Bitcoin at this point, real investors who believe in the asset understand that it has value, and they’ve bought into it for the long term.
“Every asset has fundamental Value based on metrics specific to the asset & a Price based on level where 2 individuals agree to exchange some amount of that asset in real time Investors are long-term holders focused on Value & Speculators are short-term holders focused on Price,” he said.
Negative press is expected at this stage. Bitcoin has come a long way, and one of the primary differences between this rally and the previous one is the increased attention from media outlets.
Like every other asset, analysts will write reports when Bitcoin drops. The attention will be even more considering how far Bitcoin dropped over the past week. Like Yusko and McGrath have pointed out, this flood of negative headlines will affect speculators and seasonal investors looking to just cash out on the Bitcoin rally.