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Bitcoin prices pulled back from their all-time highs above $23,000 on Friday, but the
Grayscale Bitcoin Trust (OTC: GBTC) traded higher by 1.7% on investor optimism that the huge 2020 bitcoin rally will spill over into 2021.
Former hedge fund manager Whitney Tilson predicted the bursting of the bitcoin bubble back in 2017, but Tilson has a different take on the cryptocurrency this time around. On Friday, Tilson said he doesn't recommend shorting bitcoin or any other cryptocurrency, even at all-time highs.
Back in 2017, Tilson said bitcoin was demonstrating signs of a classic market bubble. One of the biggest red flags at the time was the type of investors that were asking questions about bitcoin. Tilson noted that 2017 bitcoin investors were among the “least-knowledgeable investors imaginable.” This time around, Tilson said much more mainstream investors and firms are involved in the bitcoin rally, which suggests the 2020 gains may be more likely to hold.