Bitcoin price swings not rational: Capital Link CEO
Brett McGonegal, CEO at Capital Link International, is 'scared' of the price swings in Bitcoin but hopes the appetite for risk can transfer to equity markets
Capital Link International CEO Brett McGonegal is alarmed by the price swings in Bitcoin but hopes the appetite for risk is a potential positive that could transfer over to the equity markets.
“I’m very scared about the movement in it,” McGonegal said. “Two days ago it was at $12,000, last night it was at $19,000. I don’t think that anyone can term that rational behaviour.
“Obviously the futures contract goes into the CBOE on Sunday. The conventional wisdom is saying this will be an opportunity to have a rational trading tool that closely tracks the movement, unlike this GBTC the vehicle that everyone is using in the US to speculate,” he said.
“People say there is going to be rational behaviour because this futures contract is coming,” McGonegal said. “What happens if that’s what people are actually waiting for and that’s when people start speculating and it drives it even higher?”
“The one positive takeaway is that there’s certainly risk appetite in the market which is great for sentiment around the globe,” he added. “That people are willing to take these risks and hopefully that risk appetite transfers away from cryptocurrency and into the equity markets.”