Bitcoin retreats from $10,000, comes under fire from Berkshire’s Buffett and Munger
Cryptocurrency prices begin the week on the back foot as the No. 1 digital currency continues to struggle at the $10,000 level.
After reaching a weekend high of $9,954.95, the price of a single bitcoin BTCUSD, -1.12% slumped back below $9,500.
One technical expert, however, said he expects the momentum to remain upward. “If you take a step back and look at the weekly chart, it still looks like a reversal from the first-quarter downtrend,” said Rob Sluymer, technical strategist at Fundstrat, meaning the overall trend is still higher. “We expect pullbacks to be shallow for now with the first level of support nearing [$9,200].”
Sluymer added it’s not uncommon to see some profit taking ahead of $10,000 and the 200-day moving average — a long-term momentum indicator that’s closely watched by technical traders.
Bitcoin last traded at $9,363.28, down 1.9% since Sunday’s levels at 5 p.m. Eastern time on the Kraken exchange.
Read: If this chart is correct, it puts the price of bitcoin at $91,000 by 2020
Berkshire slams bitcoin
The weekend saw digital currencies come under fire from Berkshire Hathaway BRK.A, +1.03% BRK.B, +0.73% Chairman and CEO Warren Buffett and Vice Chairman Charlie Munger, who, not for the first time, questioned the long-term intrinsic value of cryptocurrencies. During Berkshire’s annual shareholder meeting, Buffett warned that cryptocurrencies would come to “bad endings,” while Munger had a more direct take on investor fears of missing out on the crypto craze.
Buffett’s negative outlook for cryptocurrencies is nothing new. In January, the Oracle of Omaha said cryptocurrencies would meet an unpleasant demise, adding, “If I could buy a five-year put on every one of the cryptocurrencies, I’d be glad to do it, but I would never short a dime’s worth.”
Echoing Buffett and Munger, Microsoft co-founder Bill Gates boarded the bitcoin-bashing bandwagon. Speaking on CNBC, Gates said he would short bitcoin “if there was an easy way to do it.”
Read: Bill Gates says he would short bitcoin if there was an easy way to do it
What are strategists saying?
Analysts at U.K. consulting firm deVere Group said the legendary investor needs to be more educated on the potential future of money.
“It comes as little surprise that Mr. Buffett and his 94-year-old business partner, Charlie Munger, criticized cryptocurrencies at their annual meeting. They have done so consistently,” wrote Nigel Green, CEO and founder of deVere Group.
“But what I do find monumentally baffling is that two of the world’s most successful investors cannot see the intrinsic value of some form of cryptocurrency.”
What are altcoins and futures doing?
Altcoins, or cryptocurrencies other than bitcoin, traded lower Monday. Ether ETHUSD, -0.60% , which runs on the Ethereum network, has lost 3.9%, trading at $744.99; Bitcoin Cash BCHUSD, -2.13% is off 3.8% at $1,636.40; Litecoin LTCUSD, -1.67% is lower by 2.9% at $164.16; and Ripple’s XRP XRPUSD, -1.14% last traded at 83 cents, down 2.9%.
Futures finished the day in the red. The Cboe’s May contract XBTK8, -0.64% lost 3.1%, closing at $9,405 and the CME Group Inc. May contract BTCK8, -1.01% finished the day down 2.4% at $9,435.