The bitcoin rally is very near the top and companies are being ‘gimmicky’ in adopting crypto, a currency strategist says

The bitcoin rally is very near the top and companies are being ‘gimmicky’ in adopting crypto, a currency strategist says

The bitcoin rally is "very long in the tooth" and could be about to sharply reverse course, according to one currency strategist.

Boris Schlossberg, managing director of FX strategy at BK Asset Management, told CNBC this week CME Group's announcement that it will introduce micro bitcoin futures could be a sign that the market is at the top.

"Last time they announced that there was going to be futures" - which was in 2017 - "bitcoin actually hit [the] top," Schlossberg said.

He said he thought lots of companies' adoption of bitcoin is "very gimmicky." Tesla announced in March that it had started accepting bitcoin as payment, while PayPal said on Tuesday that its US customers can use their cryptocurrency holdings to pay at millions of its online merchants globally.

"I don't think any asset that has a volatility of 20% per week can really act as a currency at this point," Schlossberg said. "And I think whatever transactions you're going to see in bitcoin are going to be infinitesimally small relative to regular currency."

The foreign exchange strategist said he thought "the whole rally in crypto... is getting very long in the tooth."

He said: "I think we're very, very close to perhaps an intermediate-term