Bitcoin could hit $ 150,000, trader says, but there’s a catch

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Bitcoin’s recent breakthrough likely has legs, but investors need to be careful about how much cryptocurrency they own, says Todd Gordon, founder of Inside Edge Capital Management.

“I think it should be in clients’ wallets, but a small part,” Gordon told CNBC’s “Trading Nation” after bitcoin hit a new all-time high on Tuesday. “Actually, we don’t have any resistance until about [$125,000] at $ 150,000, so… I think it’s going to get there. “

Approximately 3% of Gordon’s portfolio is invested in various digital assets. With Apple leaning into crypto technology, US mining on the rise due to the ban on China and the expansion of the metaverse, the space has several catalysts on the rise despite its “incredible” volatility , did he declare.

“I’m optimistic, but the volatility is so extreme, be careful and understand what you’re dealing with here,” Gordon said.

Although Federal Reserve Chairman Jerome Powell helped spark the recent rally by saying he was not considering a crypto ban, the Fed could also become one of bitcoin’s biggest headwinds, Chantico Global founder and CEO Gina Sanchez said in the same interview.

“As the economy continues to reopen and the numbers start to rise, at some point we will see the Fed pull back” from its massive monetary support, reducing liquidity in the markets and potentially stifling crypto performance, Sanchez said. . She is also the Chief Market Strategist at Lido Advisors.

Global central banks seeking to create their own digital currencies could also pose a threat, she warned.

“Central bank digital currencies have the potential to have a regulatory advantage and that’s the big unknown right now with crypto,” Sanchez said. “It can create big winners and losers.”

All things considered, she agreed with Gordon that caution was the key.

“If you take a position it should be very small,” she said.

Disclosure: Gordon owns bitcoin.

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