Wall Street eyeing bitcoin after putting in a bottom

Some Wall Street analysts and traders like what they see it bitcoin on Thursday.

But say you can’t look at it like a stock because with bitcoin there is always another shoe that can drop.“You just never know,” said one hedge fund technical analyst. “The building off the $6,000 low is very positive, but what happens when a country comes out to say they are cracking down on bitcoin?”

He continued,” I would be leery of going all in, but there is an argument to be made that the crypto has put in a bottom.”

“We are nibbling in bitcoin overnight, buying in on this rally, but we are cautiously optimistic on breaking through the $8,000  mark,” a currency trader with a boutique money manager said.

As I wrote here, I am struggling with the idea that bitcoin should be a safe harbor for investors worried about stock market gyrations, which does have its own irony.

Just look at the Dow Jones e-mini futures contract on Thursday morning. It was -50 points at 6am but by 8:45 am it was +122 points. If you see my post on the Plunge Protection Team, then you know they work in the futures market and do not buy any particular shares in companies so as not to leave a paper trail.

“There are other players in the market after seeing the sell off on last Friday and Monday,” said the money manager. “So there’s no reason to fight that trade, since they have basically unlimited resources.”

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