Colas has written Convergex’s popular Morning Market Briefing for 14 years and has a well-established reputation among Wall Street professionals. After the collapse of the market earlier in the year, he rejects the idea that investors may now have the opportunity to pass the action again.
Colas shared his worry about the relatively small wallet growth occurring with only 2.2 percent last month, compared to a 5 to 7 per cent growth in the last year. The decrease in wallet growth means that less people are opening wallets to buy cryptocurrency.
When the rising market values of last year were asked whether Bitcoin really proved to be a balloon, Colas replied:
“Certainly in retrospect it was absolutely a bubble based around the Futures launch in December…since 2013, fundamentally believe in the structure of the technology and the story, but it obviously has huge price volatility around it, and we’ve seen that even in the past month with [the market] rallying as much as it has.”
In an interview with CNBC on May 4th, Nick Colas, the first Wall Street analyst focusing on Bitcoin, wanted investors to think twice before entering the cryptocurrency market despite the recent recovery.
The fact that his cautious adoption of the mainstream can turn into a reality shortly after distinguishes his argument from other cryptocurrency investment perspectives that seem to desperately polarize their argument between deadly skeptics and enthusiastic Bitcoinists.