Wall Street’s first analyst to cover bitcoin urges caution

Wall Street’s first analyst to cover bitcoin has a new recommendation for investors: Avoid it.

Speaking with CNBC, DataTrek Research co-founder Nick Colas cited lackluster fundamentals surrounding what he calls the “FANG stock of the crypto world.” FANG, references Facebook, Amazon, Netflix and Alphabet’s Google, the highest flying and most widely held tech stocks.

“It has come down quite a long way, and we’re getting a lot of people asking is now the right time to buy,” he told CNBC’s “Trading Nation” in a recent interview.

He added: “The short answer is no.”

Bitcoin has rallied to $9700 from a low around $6400 in just the past month, based on Friday’s stock market close. Last December, bitcoin hit a record price just shy of $20,000.

“It was absolutely a bubble based around the futures launch in December, and a lot of enthusiasm for the asset,” said Colas, who owns a cryptocurrency basket worth about $2000.

He contended fewer people are interested in buying bitcoin for the first time, based on Google search and Blockchain wallet growth trending lower…

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