Hedgeye Risk Management CEO Keith McCullough announced this week that he sold all the BTC he owned, making an announcement that upset the Bitcoin bulls. While McCullough explained the reason for his decision with macroeconomic developments, he made some criticism against the Bitcoin community.
Hedgeye Risk Management CEO McCullough could have been considered a Bitcoin bull a few weeks ago. McCullough, who thought that Bitcoin might have created a new buying opportunity in September, changed his mind in the meantime.
He made the decision to sell all his Bitcoins
McCullough shared a tweet this week and announced that he sold all his Bitcoins. The master investor did not directly explain why he made such a decision. But the other tweets he shared after making this statement gave some clues as to why he might have made such a decision.
In a tweet he shared last night, the investment expert emphasized that Bitcoin has a monthly return of -7.1%. McCullough interpreted this as an indication that we are getting into Quad 4. His comment can be explained by the Growth Inflation Policy (GIP) model used by Hedgeye. In this model, where macroeconomic data is analyzed, there are four different ‘Quads’ in total. When Quad 4 is entered, it is assumed that the increase in inflation slows down and the deflation process will enter.
McCullough expects the dollar to come to the fore rather than assets such as Bitcoin during this period and gain strength against currencies such as the Japanese Yen.
He took a stand against the Bitcoin community
McCullough’s statements about Quad 4 and Bitcoin in general have been criticized by social media users. While some said that Quad 4 has not been entered yet, others argued that it was not reasonable to sell Bitcoin at this stage of the year.
The master investor reacted to these criticisms with a tweet. Addressing the Bitcoin community, McCullough gave the message that he was disappointed and said that Bitcoin investors made decisions only “based on emotions”, not “math”.