Not Convinced New Investors are Buying Bitcoin, Top Analyst Says

While headlines about tanking bitcoin prices serve ideal opportunities for investors to enter the cryptocurrency market, one top analyst thinks the asset is lacking new buyers.

Alex Saunders, the CEO & Founder of Australia-based Nugget News, offered a wave of discouraging catalysts that might have driven people out of cryptocurrencies, including a wrecked US job report. More than three million Americans filed for unemployment last week, providing first-hand information about how the Coronavirus pandemic is affecting the US economy.

“A downside is [now] likely for stocks & crypto,” asserted Mr. Saunders. “I’m predicting it by next week. Are new investors entering crypto? I’m not convinced.”

The statements suggested a potential drop in bitcoin’s retail demand as jobless people turn to cash as their last resort amidst a pandemic. Meanwhile, institutional investors are also reducing their exposure in the cryptocurrency market for cash liquidity: to cover their margin calls…