Edelman: Time to increase position in Bitcoin

Investment advisor Ric Edelman argued that it would be wiser to increase positions in Bitcoin in the current period. Edelman, who is also the founder of Edelman Financial Engines, which has approximately $300 billion in assets under its management, said:

There is more justification for big increases to come than big drops. There is little reason to worry that Bitcoin prices could drop 20 percent or more. This shows that you need to add to your positions today.

Edelman told CNBC that despite the recent drop, Bitcoin is performing 77 percent in 2023 and investors are optimistic. The renowned advisor suggested that the upside potential for the number one cryptocurrency is strong due to the XRP decision, advances in crypto legislation in the US Congress, Bitcoin ETF filings and the upcoming Bitcoin block prize halving. According to Edelman, all of this is a sign that the Bitcoin price will be significantly higher in six months than it is today.

On the other hand, Edelman claimed that for the next few weeks, the market will continue to stall. Arguing that there will be no important news during this period, the investment advisor said:

It is unlikely that Gensler will change his stance on crypto, that the SEC will pass a decision on Bitcoin ETF applications, that Congress will pass a major law. Still, all signs for these possibilities remain strong. So everyone is in a waiting game and this will probably continue for the rest of the summer.

Edelman recently said that the continued interest rate hikes by central banks, including the Fed and the European Central Bank, are giving investors more reason to increase their Bitcoin positions. Pointing to the almost complete deterioration of Bitcoin’s correlation with stocks, Edelman commented:

As markets show uncertainty about whether a recession or a correction in the stock market will occur, investors are looking for ways to ‘hedge’ their diversified portfolios.