Bitcoin price rise baffles ‘Wolf of Wall Street’ as cryptocurrency rises above $7,000

'I was a scammer,' Jordan Belfort said. 'I had it down to science, and it's exactly what's happening with bitcoin'

Anthony Cuthbertson
Wednesday 29 August 2018 16:28 BST
Comments
(Reuters)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

A notorious Wall Street broker has called bitcoin investors "brainwashed" despite sustained price gains for the cryptocurrency.

Jordan Belfort, whose crimes formed the plot of the Hollywood film The Wolf of Wall Street, said in a series of interviews with CNBC that bitcoin could be worthless by the end of the year, and that it will be "the bust heard around the world" when it happens.

"I was a scammer. I had it down to science, and it's exactly what's happening with bitcoin. The whole thing is so stupid, these kids have gotten themselves so brainwashed" Mr Belfort said.

"This thing is going to evaporate like a mirage. There's a lot of really honest people who are going to get slaughtered."

Leonardo DiCaprio depicted Jordan Belfort in the 2013 film The Wolf of Wall Street
Leonardo DiCaprio depicted Jordan Belfort in the 2013 film The Wolf of Wall Street (AP)

But despite such predictions, the price of the world's most valuable cryptocurrency continues to rally. On Tuesday, bitcoin broke above $7,000 for the first time since early August and continues to trade above that price point.

The gains have also come despite recent bad news surrounding the cryptocurrency, with the US Securities and Exchange commission (SEC) rejecting a ruling that could have a major impact on bitcoin's future.

The ruling relates to an application for a bitcoin exchange-traded fund (ETF), which would track bitcoin futures contracts. In making its decision, the SEC cited fraud and manipulation concerns of bitcoin markets.

Another proposal for a bitcoin ETF is set to be ruled on before 30 September, which could be why the price has not been impacted.

Cryptocurrency analysts said it was too soon to say whether the recent momentum is the start of a more prolonged price recovery, with one warning investors to "not get carried away".

Matthew Newton, who works as an analyst at the online investment platform eToro, said: "The reaction to the recent ETF rejection was more muted than many expected – which is obviously a positive. The fact that negative news didn't move the market lower suggests sellers may be running out of steam for now."

He added the climbing higher above $7,200 "remains challenging," due to an imbalance between short and long traders currently invested in the cryptocurrency market.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in