The founder and CEO of Citadel is scratching his head over cryptocurrencies such as Bitcoin, claiming that not one of his managers has wanted to buy it.
Knocking Bitcoin
Ken Griffin is an American hedge fund manager and investor. He’s also the founder and CEO of Citadel, a hedge fund firm he founded in 1990.
Griffin was speaking yesterday at the Delivering Alpha Conference in New York where he was talking about digital currencies. And not in a favorable light. In a report from CNBC, he stated:
I don’t have a single portfolio manager [of mine] who has told me we should buy crypto, not a single portfolio manager. I have a hard time finding myself wanting to be in the position of being a liquidity provider to a product that I don’t believe in.
On top of that, he said that he wished the younger generation would focus on productive activities rather than spending time investing in cryptocurrencies. He added:
I still scratch my head [about bitcoin].
His remarks are similar to those of Larry Fink, CEO of BlackRock. Earlier this week, he said:
I don’t believe any client has sought out crypto exposure. I’ve not heard from one client who says, ‘I need to be in this.’
Bitcoin Price Rises Again
News of Griffin’s remarks come at a time when the crypto market has seen an uptick in prices. Earlier this week, it was reported that the number one cryptocurrency had increased from $6,700 to $7,400 in a matter of hours.
At the time of writing, Bitcoin is trading at $7,392, according to CoinMarketCap. This represents a near 19 percent rise in the past seven days. This news has brought forward industry analysts who think the coin’s price could go higher.
Marc Lasry, the CEO and co-founder of Avenue Capital Group, thinks it will increase to $40,000. He believes that as it becomes more mainstream and more markets open to it, it will rise in value. He added that he sees Bitcoin holders making five to 10 times their money in the next three to five years. Lasry has also, reportedly, invested one percent of his net worth into the digital currency.
Fundstrat Global Advisors crypto bull Tom Lee remains optimistic about where Bitcoin is heading. Making an appearance on CNBC’s Fast Money on Tuesday, Lee said that Bitcoin sitting 30 percent under its 200-moving day average – currently around $10,500 – was positive.
According to him, in the next six months, people owning the cryptocurrency could do well because of this, adding:
The message is when Bitcoin is trading 30% below its 200-day, its a huge bull signal… If you could ever buy Bitcoin 30% below its 200-day moving average, you almost always saw good risk (and) reward being long.
Do you think this is the start of a bull run? Let us know in the comments below.
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