By CCN: Crypto-mania has once again gripped mainstream financial outlets. CNBC’s Fast Money panel were beside themselves yesterday as they analyzed bitcoin and litecoin’s parabolic rise in recent months. The panel whooped and cheered at the mention of litecoin’s 400 percent price rise. The anchor…
By CCN: Crypto-mania has once again gripped mainstream financial outlets. CNBC’s Fast Money panel were beside themselves yesterday as they analyzed bitcoin and litecoin’s parabolic rise in recent months.
The panel whooped and cheered at the mention of litecoin’s 400 percent price rise. The anchor ended the segment yelling:
“Sell the house, sell the car, sell the kids. Buy litecoin!”
The CNBC panel are right to be impressed. After hitting a low of $22.93 back in December, litecoin has surged back to $118.15 in May. It’s a meteoric rise of 416 percent that dwarfs even bitcoin’s resurgence.
As CCN reported, the catalysts for this jump are numerous. On-chain metrics have strengthened. The number litecoin addresses have grown rapidly in 2019 and a handful of celebrity endorsements have raised the coin’s profile.
Despite the run-up, Litecoin Foundation director Franklyn Richards has warned investors against getting too excited. He said litecoin risks entering bubble territory if price continues to decouple from underlying activity.
“Price has by far and away ran away from any on-chain metrics, meaning while this growth is positive it is not currently sustainable and we could see a pullback. Otherwise, we may risk finding ourselves in another bubble scenario sooner than we realize.”
One CCN analyst, however, is more bullish. Citing litecoin’s upcoming ‘halving’ and a handful of bullish technical indicators, Kiril Nikolaev expects litecoin to climb a further 130 percent before hitting resistance.
In the same CNBC segment, the panel discussed bitcoin’s latest movements. One panelist admits that, while he is no expert on bitcoin, if he looked the chart without knowing the asset behind it, he’d say it was poised to break higher.
“I’m the wrong person to speak to bitcoin, but I’ll say this, if you didn’t have a name in front of it, just looked at the chart, you would say this stock has broken through key resistance on the upside, it goes higher.”
There’s a running joke among crypto enthusiasts that CNBC’s bitcoin coverage is a strong sell indicator. When mainstream outlets start pumping crypto, it’s time to get out! Twitter users were quick to reply with quips:
“Whatever is discussed on CNBC, do the opposite.”
This article was edited by Samburaj Das.
Last modified: May 29, 2019 11:05 AM UTC