Hedgeye Risk Management CEO Keith McCullough said that he got rid of his bitcoins, as he expects the market to enter a deflationary phase.
Analysts at Hedgeye Risk Management made a model of the behavior of the market under the name of GIP, which consists of four stages. According to McCullough, the market is now moving into the fourth, deflationary phase. This is the most “depressive” stage, which is characterized by a significant decline in economic growth and inflation. This state of the market usually does not favor risky assets, which include bitcoin.
“The fourth phase is the lowest point of the economic cycle. And all our research is aimed at ensuring that this phase does not affect our customers,” said the CEO of Hedgeye Risk Management.
In a recently released video, McCullough noted that he expects the market to deflate in the near future. This is also indicated by the growth of the US dollar against the Japanese yen. He also wrote that He was disappointed with the position of bitcoin fans:
“I expected more from the Bitcoin community. I thought they were doing calculations. And they only dream and are guided by emotions.”
Note that not everyone shares McCullough’s point of view. For example, Abra CEO bill Barhydt said that for the first time in five years, he is so confident in the growth of bitcoin. And Bloomberg analyst Mike McGlone believes that within five years, the bitcoin exchange rate may exceed $100,000.