David Tice on BTC: Avoid It Right Now
2021 has virtually become the new 2018. The world’s number one digital currency – bitcoin – has fallen by more than 50 percent over the past few months. Attaining a new all-time high in mid-April of this year of around $64,000 per unit, the currency has seemingly fallen to just over $30,000 at press time… A serious dip for any asset.
Tice believes that anyone who buys more bitcoin during this period is not making the right financial decisions. In a recent interview, he commented:
The market is very overpriced in terms of future earnings. We are adding debt like we have never seen. We have the Treasury market acting very strange with rates falling dramatically.
To be fair, Tice is saying that right now is a rough time for all investors, claiming that stocks are not much of an improvement over the state of bitcoin and crypto. The man has developed a solid reputation over the years as one who makes lavish bear bets during bullish markets. He is presently saying that the market is about to undergo a serious overhaul which could potentially leave a lot of traders in the dust:
We are not out of the woods yet, and this is a dangerous market.
Tice particularly thinks that the world of big tech is in for a serious pullback. He is confident that while there may be some short-term gains to be had, big tech companies – such as Facebook, Apple, Amazon, and Google – could fall by as much as 40 percent in the coming weeks and months, and he is telling people to weigh all risks before getting involved. He says:
A lot of money has been thrown at Alphabet and Microsoft, Apple and Facebook, Twitter, etc. Costs are going up in that sector.
However, he is extremely worried about the crypto space more than anything. While he entered 2021 in a bullish frame of mind, he first began turning bearish in March when the currency began striking new price highs. He states:
We had a bitcoin position when bitcoin was at $10,000. However, when it got to $60,000, we felt like that was long in the tooth… Lately, there has been a lot more uproar from central bankers. The Bank for International Settlements [and] the Bank of England have made profound negative statements. I think it is very dangerous to hold today.
You Can’t Go Wrong with Gold
Tice further stated that investors are not likely to go wrong with gold. He says:
You look at this lack of discipline in monetary and fiscal markets. Gold is truly the place to be. Over 5,000 years, gold and silver do very well as protection against fiat money.