Bitcoin has declined over 15 percent in the last two days. Nevertheless, cryptocurrency trader Brian Stutland of CME holds that it’s going to surge back up to $7,250 in the short-term.
“We Don’t Need Them”
Speaking to CNBC’s Futures Now, Brian Stutland shared his position on the current state of Bitcoin (BTC) 00. According to the crypto trader, the world’s largest cryptocurrency is going to surge back up to $7,250 in September.
I’m looking at the September futures contract and I’ll be willing to buy it, actually at this point. $6,450 is my level, looking for that September futures contract to trade up to $7,250 on the CBOE futures contract with a stop out at $5,950.
Strutland associates the recent decline with the reports that Goldman Sachs has backed out on its plans to open a Bitcoin trading desk. Indeed, immediately after the reports stated circulating the media, the price of Bitcoin, as well as that of other cryptocurrencies, has experienced a substantial decline. BTC dropped with more than $300 in 10 short minutes while Ethereum (ETH) plunged with as much as 12 percent.
Shortly after the reports, the Chief Financial Officer of Goldman Sachs said on stage at the TechCrunch Disrupt Conference in San Francisco, that this was “fake news.”
Stutland also makes a case that Bitcoin doesn’t really need a trading desk to be efficient. Speaking on the matter, he remarked:
I would say forget about those guys. Bitcoin was made to transact off the deposits of bank sheets. We don’t need them and in that sense I’d be looking for it to be moving back higher.
Volatility Needs to Contract
According to Stutland, Bitcoin’s volatility is one of the things that scares investors away.
I would like to see some of that volatility contract a little bit to get people a little bit more comfortable because as you see those big moves, that sort of backs investors away. When we hit those certain technical levels then people want to get out right away.
He also maintains that we are in the early stages of the bottoming process after having reached all-time highs in late December 2017 and early January 2018. According to the Stutland, it’s going to take a full year or more for the prices to bottom out and for people to become comfortable with this reality. Stutland also noted that there will be shake-ups, and that:
Bitcoin, Ethereum, and some of the leaders will stay. A lot of the altcoins out there will go.
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