Bitcoin's sharp decline is not indicative of the market: Wells Fargo Securities

  • Declining bitcoin prices are not a sign that the market will fall too, says Chris Harvey, Wells Fargo strategist.
  • Bigger indicators of economic growth, he says, are tariffs, Treasurys and Trump.
  • Bitcoin sell-offs could “add fuel to the fire,” but are not a major concern, he says.

Declining bitcoin prices are not a sign that the market will fall too, said Chris Harvey, head of equity strategy at Wells Fargo Securities.

“In the marketplace, there are other issues,” Harvey told CNBC’s “Fast Money” on Wednesday.

He said bigger indicators of the economy are what he called “the three Ts”: tariffs, Treasurys and Trump. What those three are doing, he said, will help predict where the market is going.

Meanwhile, digital currencies are a risky asset, Harvey said, but are becoming more institutionalized than they were in the past.

“When markets trade down, [cryptocurrencies] should trade down with markets,” he said. “When markets trade up, they should trade up with the market. They should amplify that movement.”

Bitcoin, the most popular digital coin in the crypto market, grew 2,000 percent last year, peaking at around $19,500 in December. As of Wednesday evening, the digital coins hovered just above $8,000 — the lowest levels all month. Some market watchers fear the bitcoin bubble may soon burst.

Harvey conceded that a bitcoin sell-off could “add fuel to the fire” in a volatile market, but said he’s “not so worried” about bitcoin or other cryptocurrencies at present.

“We’re worried about those three Ts,” he said.

Source: Read Full Article

Leave a Reply