Peter Mallouk, chief investment officer at Creative Planning, issued a direct warning: don't buy cryptocurrencies right now. He extends the same caution to gold. Speaking on CNBC, the wealth manager a
Peter Mallouk, chief investment officer at Creative Planning, issued a direct warning: don't buy cryptocurrencies right now. He extends the same caution to gold. Speaking on CNBC, the wealth manager acknowledged that current market conditions create what some investors view as "tempting" opportunities. But he cautioned younger investors against placing bets on speculative assets. That's the wrong direction, he argued.
"It's a lot sexier to buy things like cryptocurrencies, gold, and silver but they don't bring any income to the investor," Mallouk said, citing the sector's booms and busts.
His central complaint: Bitcoin, gold, silver, and cannabis stocks generate zero returns for shareholders. He called Bitcoin a "dead man walking" in earlier assessments. In a bear market, Mallouk sees better opportunities in companies like Disney, McDonald's, and Accenture—firms that deliver real returns through dividends and reinvestment.
Bitcoin's price history backs his skepticism. The asset reached $20,000 in 2017, up from almost nothing in 2009. The 2018 downturn sent it to $3,000. Recovery came in October 2019 when it topped $14,500, but March's selloff pushed it back to $3,800. This volatility became the defining pattern.
Last week brought another shock. Someone moved 50 bitcoins from the Satoshi Nakamoto era, coins that hadn't transferred since 2009. The movement startled traders. They feared that Satoshi himself, or another early whale with thousands of coins, was preparing to sell. Panic erupted. Prices dropped more than 10% as the weekend approached, breaching the $9,000 support Bitcoin had held for weeks.
Monday opened with no recovery. The flash crash had sent the price from $9,900 to $8,800 in hours. Attempts to bounce ran into selling at each level. Bitcoin couldn't establish footing.
Analysts debunked the Satoshi theory. The bitcoins belong to an early adopter with a smaller stake, not Bitcoin's founder. But the market had already reacted. The warning that someone might dump thousands of coins was enough to trigger panic-selling that destroyed value.
By press time, Bitcoin held above $8,800 though conditions remained shaky. Over the past 24 hours the asset had shed close to 5%.
The technical picture showed severe damage. The $9,200 support became resistance. $8,600 is now the critical support floor. A break there opens $8,400 and $8,200 as next targets. Below those levels, Bitcoin could retest May lows around $8,000 and extend toward $7,400.
