Bitcoin is surging like it never has before. During the Christmas holiday, the world’s number one cryptocurrency by market cap jumped to $27,000 per unit, and it’s still hovering at this number now. The asset is doing better than ever, and yet for Nigel Green, the time to sell may have arrived.
Nigel Green Is Selling His Stash
As the chief executive of financial group deVere, Green admits in a recent interview that he has sold half of all his bitcoins. He states:
I have sold half my bitcoin holdings as it hit an all-time high. Why? Because it should now be treated as any other investment – that’s to say, where possible, it’s better to sell high and re-buy in the dips.
This creates a two-sided situation. One could easily argue that Green is making a big mistake. After all, bitcoin has been on a heavy roll for months now, adding sometimes thousands of dollars to its price over a single week. There is now talk of bitcoin hitting the $30,000 mark next, and with so much potential behind it, one can’t help but wonder if Green sold a bit early.
However, there is also talk of retailers being behind the recent surge. As we all know, retailers don’t always offer the same support as institutions. This was the case in 2017. Bitcoin surged to its then all-time high of $19,000+, and things were looking good from every angle. Sadly, this wasn’t meant to be as the currency struck a new low beginning roughly two months later, falling into the $9,000 range by the time early February arrived.
It only took another nine months for the asset to lose roughly 70 percent of its value. Thus, with the recent support of retailers in the book, a correction for bitcoin is possible. Green may know this, which is why he’s choosing to sell now. Cash in before it disappears, right?
Bitcoin is presently up about 250 percent over the last year, and with 2021 right around the corner, many traders could potentially be looking to cash in soon, which could bring the asset to a low point beginning in the new year. Green adds:
The steady gains in the price of bitcoin have made the digital currency the top performing asset of 2020, up over 200 percent. As such, I felt the time was right for profit taking.
No Lack of Confidence in BTC Whatsoever
However, he further comments that while he’s selling, he remains confident that the price of bitcoin is in a solid place, and that the asset will continue to do well in the coming weeks and months. He states:
There should be no misunderstanding about my decision to sell. It is not due to a lack of belief in bitcoin or in the concept of digital currencies. It’s profit-taking now to buy more later.