After skyrocketing 43.7 percent in the final two weeks of 2016, the Bitcoin Investment Trust (OTC: GBTC) has made a sharp reversal in the past two days. On Thursday, the ETF plummeted 11.6 percent. In early Friday trading, the GBTC is down another 7.7 percent.
According to Dennis Gartman, author of The Gartman Letter, a Bitcoin selloff was inevitable. Gartman says the recent runup in Bitcoin came from Indian and Chinese citizens rushing into the currency to avoid weakness in their native denominations.
“These sorts of things always...ALWAYS...end badly and they ended yesterday amidst early buying panic and then even greater panic selling,” Gartman writes.
Gartman adds that he hasn’t ever seen anything like the trading action in Bitcoin in the past 48 hours. He predicts that the panic-selling is not yet over and Bitcoin investors could be staring at significantly more downside in coming days.
He also hints that the complexity of Bitcoin’s technology may be scaring off potential investors.
“Bitcoin may be the currency of the future but quite honestly we find it quite nearly incomprehensible at this point,” Gartman concluded.
The GBTC ETF was up roughly 90 percent in 2016. A new big-board-listed Winklevoss Bitcoin ETF could be launched sometime in 2017.
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