Over the past two days, the cryptocurrency markets have rallied, with Bitcoin rising from around $5,336 to $6,130 at the time of publication.
Despite the uptick, Mills says in a tweet data from previous crashes suggests another major pullback is coming in traditional markets – one that will take Bitcoin into another wrecking ball.
Pullback is Likely to Happen on Monday
“If you have not taken your money off the table yet, I don’t know what you’re waiting for. Monday is not going to look good. Likely all 3 circuit breakers will be hit sometime soon. Yes, Bitcoin is going to get rekt badly once more before this is over. Thinking of selling more here.”
In response, Schwartz asks whether taking money off the table is a futile response, given potential bond and forex market weakness.
Schwartz also questions the strength of the banks, and whether holding assets in US dollars is a smart move.
“If you take it off the table, where do you put it? Bond funds are also risky, money market may break the buck, are banks even safe?”
Mills says that, in the short term, investors should hold a large cash position, spread across multiple banks to reduce the risk.
“Heavy weight cash and deploy it conservatively; own different assets. Invested in things and businesses as the trend shifts, cash is temp. I’m slowly moving out and will slowly move back in so I don’t do any YOLO bets. Spread cash across multiple banks.”
Schwartz was open about his status as an investor on XRP. He also said he sold $40,000 worth of Ethereum (ETH) in April of last year, and plans to keep skin in the crypto game for the ” foreseeable future.”
“The majority of our liquid assets is still XRP that I purchased on exchanges by market making. The majority of our illiquid assets is still Ripple stock. I’m going to have lots of skin in the game for the foreseeable future whether I want to or not.”