When your completely non-computer savvy, totally apolitical friends or family members come up to you asking, “Hey, you think I should buy this Bitcoin thing?” you’re in bubble territory. The coin is very possibly overheated, and it might be time to sell.
We need a healthy pull back. Too much hype about #bitcoin halving and altseason. Too much dumb money re-entering shitcoins. Looking for $7200. It takes time for halving to propogate and market to react. Maybe 6-7 months. Only my opinion. What do you guys think?
— A v B (@ArminVanBitcoin) February 14, 2020
Also, when CNBC starts flogging the coin to its straight-laced, buttoned-down audience of respectable, Italian suit-wearing nest egg builders – it might be time to jump ship for the subsequent altcoin bubble while running for Treasury bonds until the pull-back bottoms out. Then, scoop some Bitcoin with all those profits you took and BTFD.
Yes, I’m saying sell the friggin’ rally.
Morgan Creek Digital founder Anthony Pompliano tweeted a CNBC “Fast Money” segment Tuesday with a remarkable quote from one of the panelists:
“In a world where central bankers are tripping over themselves to devalue their currency, Bitcoin wins. In a world of fiat currencies, Bitcoin is the victor.”
— Pomp 🌪 (@APompliano) February 12, 2020
CNBC of all financial news sources is bullish Bitcoin this week? Hit the panic button!
This is also the network that literally laughed at Euro Pacific Capital CEO Peter Schiff while he forecast the housing crisis in 2006. CNBC made fun of him as he accurately diagnosed the Federal Reserve’s expansive monetary policy as the underlying source of the problem.
Now these Wall Streeters are ripping the central banks for printing money like gold bug congressman Ron Paul circa 2007? Get out now.
Does Anyone Believe CNBC Is Long Bitcoin?
The CNBC anchor opens the segment:
Get this! If you’re not paying attention, you probably should be. Bitcoin is now up 44% this year. So Tim, we went from like 0 to 20,000, back to 4000 now back to 10,000, is anything different this time around?
Then one of the panelists talks up gold and Bitcoin while trashing central banks:
I think what’s different is first of all you’ve shaken out a lot of weak players. You’ve shaken out a lot of the momentum… You’ve certainly had major banks in the world talk about their own blockchain platforms… [and] a dynamic where money’s become freer than free. Gold’s been rallying. Why shouldn’t Bitcoin be rallying?
And another panelist piles on:
If you talk about a Fed gone nuts, as this guy thinks it has. Or all the central banks going nuts. I mean that’s part of the bull case for Bitcoin. Plus institutional interest as well.
I could be wrong here, but that’s a pump right there. Institutional interest indeed. It seems all too likely that massive institutional holders of Bitcoin are looking for an exit, so CNBC is pumping to the retail crowd to sweeten the sell-off.
Timing The Crypto Market
Now don’t misunderstand me or get mad at me if you sell, and there’s more left in the rally that you miss out on. I don’t know where the top is. No one else does either. I don’t advocate day trading. Trying to time the market is a fool’s errand.
But taking profits on the way up has usually paid off for an asset as volatile as Bitcoin, that wildly swings up and back down again. And if there are other securities you like on a long-term, macro basis, that happen to be on sale at the moment, now isn’t a bad time to take Bitcoin profits and get a bargain on something else.
BTC/USD, source: TradingView.com
Disclaimer: This article is the opinion of the author, and does not represent professional financial or investing advice.