Bitcoin (BTC) Gains Momentum on Cannabis with CNBC Counter Indicator
- CNBC has recommended to ditch Bitcoin for cannabis stocks.
- Despite these recommendations, Bitcoin stocks were boosting while cannabis stocks took a dive.
CNBC has been a rather controversial force within the cryptocurrency community, specifically for Bitcoin. It has been covering key details in this sector since 2017, which happened around the same time that Bitcoin started to rise originally, though the outlet has made a few bad calls, according to Ethereum World News.
For example, Jacob Canfield, a crypto personality and trader, had revealed that the counter indicator was 95% throughout 2018, predicting rise when the token ultimately fell.
Now, it looks like the counter indicator is repeating this pattern, according to Ceteris Paribus. The analyst cited data from Messari’s OnChainFX, noting that Bitcoin has spend the last four months rallying against the cannabis stocks.
Since February 22nd, Bitcoin has rallied by 167%, coinciding with the publication of a quote from a “wealth advisor” that suggested that consumers dump Bitcoin and opt for cannabis stocks. At the same time, these so-called “hottest” cannabis stocks lost a substantial amount of value. Tilray, for example, already lost 45%, while CannTrust lost 71%.
"Forget bitcoin, cannabis is the place to go, says US wealth advisor" – @CNBC (Feb. 22, 2019).
Counter trade indicator strikes again. pic.twitter.com/TTZnHty4kZ
— Ceteris Paribus (@ceterispar1bus) July 21, 2019
The article, for anyone that hasn’t read it, referenced Carol Pepper of Pepper International, who states that stocks related to cannabis would not see the same “frenzy” that Bitcoin has. Essentially, she implied that she didn’t see cannabis stocks following the same pattern of booming and busting like Bitcoin has experienced.
Obviously, Bitcoin has recovered since then, but mainstream media was reporting that cryptocurrency was basically over.
Forget bitcoin, cannabis is the place to go, says U.S. wealth advisor. https://t.co/RxDTJLHgfy
— CNBC (@CNBC) June 23, 2019
Even though the advisor has since been proven to be completely wrong, CNBC has curiously continued to run the article and even push it on social media.
Still, this decision shouldn’t set the tone for the way that CNBC approaches cryptocurrency, because they’ve had multiple “good takes” on the industry in the past. Joe Kernen, who is one of the hosts and anchors of Squawk Box, has been a bold bull of Bitcoin, and he has been optimistic since the announcement of Libra.
Kernen recently questions US Treasury Secretary Steven Mnuchin, regarding his view on cryptocurrency. Kernen pointed out that cash can be used just as easily as Bitcoin for illegal activity, if not more, leading him to question the warning issued by Mnuchin that cryptocurrency would be seeing “very, very strong” regulation soon.
Chamath Palihapitiya, another major Bitcoin bull, as well as a former executive with Facebook and a current minority owner of the Golden State Warriors, recently showed up on CNBC as well.
Palihapitiya stated that Bitcoin is basically insurance against fiscal policy and macroeconomic risks that could be questionable. The statement was followed by encouragement to viewers to purchase Bitcoin.