Bitcoin Bounces Back Above $55K, but Trader Has His Eye on Two Other Cryptocurrencies
Bitcoin just made a major comeback.
The cryptocurrency rallied on Wednesday, topping $55,000 and hitting its highest level since mid-May. Regulatory fears have eased this week after both Treasury Secretary Janet Yellen and SEC chair Gary Gensler said they have no plans to impose restrictions on cryptocurrency trading.
Bill Baruch, president of Blue Line Capital, had a plan over the summer to beef up his position in bitcoin as its price plummeted – re-entering at $32,000 and adding to it if it fell to as low as $20,000.
“It didn’t get there. I didn’t get my full position on but what that ultimately did is it got me doing more research and trying to find where else could I invest this money that I want to be in crypto,” Baruch told CNBC’s “Trading Nation” on Wednesday.
Baruch highlights two cryptocurrencies he is getting behind as an alternative to bitcoin – Solana and Algorand.
“Solana is actually my highest holding right now, got in that at a good time and that has risen pretty sharply. I think that has legs to go as well from here… and Algorand to me feels like Solana two to three years ago,” he said.
Algorand looks constructive on the charts, he continues. Baruch says it looks to be a buy so long as it holds above $1.50. It traded at $1.82 on Wednesday.
Delano Saporu, founder of New Street Advisors, says greater adoption for bitcoin should support a continued rebound.
“You’re looking at more institutions getting involved. We saw US Bank is going to offer institutional custody services. We’re also seeing Bank of America implementing research on Bitcoin as well so I think there is still more room to run,” he said during the same segment.
More constructive headlines in the cryptocurrency world will have a domino effect of drawing more funds into the space, he says.
“That’s going to drive a little bit of momentum and a spike forward if we get some more volume in the buying. I think that could push us a little bit higher here … so I’m still buying. I think it’s an opportunity for investors to really do some more due diligence and see if it makes sense for them as well,” Saporu said.