The Bitcoin price has been a hot topic of discussion over the last few weeks (and months) with Bitcoin having soared to highs of nearly $14 000. Recently it has retreated to the range of $10 000-$12 000 per Bitcoin, leaving many wondering if the rally is over? Mati Greenspan, the Senior Financial Analyst at eToro, recently spoke on the Let’s Talk Crypto Podcast about the state of the Bitcoin market, the high-risk nature of the new asset class and his long term bullish bias for Bitcoin
Upon being questioned about the bitcoin market and whether Bitcoin had exited the “Crypto winter”, Mati replied:
“It does increasingly seem like we are in a bull market, as I see it, Bitcoin is by far the best performing financial asset in the world this year.“
In follow up on his Bitcoin market comments, Mati commented:
“One of the things we can see is the volume, how it has been rising with price, combined with the steady increase in transaction volume on the Bitcoin blockchain. The derivatives markets such as the futures contracts by the CME group and the Bitmex futures have all experienced extreme highs very recently, as well as peer to peer website LocalBitcoin.com, you can see volume spiking.“
In response to the question of where all this recent excitement about the Bitcoin market has come from, Mati theorized:
“All of the data that I have seen suggest that this entire monster rally has primarily been caused by people who are already familiar with “crypto” markets. This is consistent with what we have seen in previous Bitcoin bull markets, at the early stages it is mostly people who are already involved in the space, then other people get involved as the price keeps rising leading to FOMO and the like.“
And what was the catalyst for those in the know buying in at the early stages of the Bitcoin market bull run?
“One of the main drivers for those already involved bidding it (Bitcoin) up is probably the speculation that the institutions are very likely to be stepping in with a heavy hand very soon.”
Like many new startups, new cryptocurrencies are high-risk ventures that only see a small percentage succeed and the rest fail.
“It is likely we will see 90% of them (cryptocurrencies) fail“ said Greenspan
Although he does believe there are those that will succeed, those with a specific niche, he sees Bitcoin as the ‘backbone’ of the space.
Mati is also known for having called for caution when the 2017 frenzy blow-off top occurred, managing to sell some of his 2017 Bitcoin gains near the peak. When asked where he thought the bitcoin price would peak by the end of 2019 he quickly replied:
“Between one hundred dollars and a million!”
Upon being pressed further for an answer he added:
“The probability of Bitcoin regaining the 20k high, I believe the market is pricing in a 50% chance of that happening, based on the outstanding options data presented by LedgerX“
Will we see Bitcoin regain the $20k high again in 2019? Let us know what you think on Twitter. If you would like to read more interesting Crypto articles or educational pieces head over to our news and blog front page.
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