As the sharp fluctuation in the Bitcoin (BTC) price continues, financial analyst Jeff Sica made a striking analogy while evaluating the recent decline in the market.
Sica described Bitcoin as “having a pet tiger,” saying investors should be more aware of the high risk.
Speaking about Bitcoin, which has fallen to levels between $86,000 and $87,000, Sica noted that recent price movements have caught many investors off guard. He noted that Bitcoin has been performing strongly for a long time, but now some of that has been reversed.
Sica noted that Bitcoin has recently shown a high correlation with the NASDAQ. He argued that when the NASDAQ falls, Bitcoin also falls, but when the index rises, Bitcoin fails to recover to the same extent. He said this generally indicates that the market is nearing its bottom.
Sica noted that institutional investors’ entry into Bitcoin through ETFs and leveraged transactions has exacerbated this volatility, advising against panicking. However, he emphasized that he wasn’t recommending buying for everyone, adding that only investors with a high risk tolerance should consider these levels.
Stating that Bitcoin will continue to exist in the long term, the analyst reminded that its market value has almost caught up with gold and said, “Bitcoin is here to stay.”
*This is not investment advice.