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Andreessen Horowitz not a catalyst in crypto-comeback, says Bart Smith

Priyamvada Singh



Andreessen Horowitz not a catalyst in crypto-comeback, says Bart Smith
Source: Pixabay

CNBC Fast Money recently tweeted an interview on the cryptocurrency market and its comeback with Bart Smith, the Digital Asset Leader of the trading conglomerate group – Susquehanna International. During the interview, Smith shared in detail, his views on various catalysts leading to the comeback of retail in crypto.

On being asked if retail will come back to crypto, the crypto king explained it through a recent case of Andreessen Horowitz launching crypto-fund worth $300 million. He believes that since Horowitz is a venture capitalist and Fintech, it is not a tremendous departure from where they were or what they have done.

Smith further states:

“If it was a big asset manager or like a brand name hedge fund that probably would have more catalyst in the space and when you talk to those folks [referring to venture capitalists], you don’t really get that first mover sense of urgency.”

He also spoke about SEC’s recent statement where Ether had been announced a non-security. Smith said:

“Two weeks ago when SEC talked about Ether not being a security and in kind of stating why it left out… …well a lot of these tokens don’t meet those criteria so are they going to be securities and if so are they going to need to be on broker-dealers? And that’s an interesting part of the market and frankly where you have seen the demand is from retail people in the US – Coinbase, Gemini, Circle – all those people are servicing retail investors.”

Crypto is a global asset, more than 50% of the volume traded is in Asia. The question is ‘if the Asian community is more of a catalyst than that of the US’. On this remark, Smith cited an example of the IRA market, leading institutional by borrowing tools from ETF and utilizing them to build portfolios.

IRA gathered assets and began doing institutional size trades, which ended up becoming a case study for larger institutions. For instance, Pension and endowment companies started using ETFs; which stands as an analogy to the current scenario in the crypto space. He explained:

“I think in this space you could see the same thing. Large pools of retail non-institutional assets but family offices kind of act like small institutions and I think that might be a proving ground where you see once again kind of the lower end of institutional leading.”

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Priyamvada is a full-time journalist at AMBCrypto. A graduate in Journalism & Communication from Manipal University, she believes blockchain technology to be a revolutionary tool in advancing the future. Currently, she holds no value in cryptocurrencies.


Ethereum [ETH] might have caught a break from bears due to formation of ‘Golden Cross’




Ethereum [ETH] might have caught a break from bears due to formation of 'Golden Cross'
Source: Unsplash

Ether, more commonly known as Ethereum, is the world’s second largest cryptocurrency and it might have turned bullish due to the initiation of the ‘Golden Cross’ in the daily chart. Golden Cross, is when the 50-day simple moving average crosses above the 200-day simple moving average, which indicates that the price has turned bullish and that the cryptocurrency has bottomed.

Source: TradingView

Historically, Ethereum’s last Golden Cross took place in February 2017, when the price of ETH was ~$10; the price after this cross was bumped to $1,600, which was a meteoric rise of 15,000%. As bullish as this sounds, this might not be the good news that the crypto community is hoping for, as the ‘Golden Cross’ isn’t absolute and there are times when the crossover could be a fakeout. Crossover fakeouts had occurred for Bitcoin in 2014.

The weekly chart for Ethereum has been consistently forming higher highs since 2019, which is a bullish indication. The MACD indicator and the RSI indicators are both indicating a steady rise since 2019.

All aboard the ‘Speculation Train’

If another meteoric rise is to be expected from the crypto ecosystem, the price has to undergo a parabolic rise. The price of Ethereum at press time was $174 and had a market cap of $18 billion; assuming approximately 10,000% increase [instead of the 15,000% rise], the price of Ethereum would reach approximately $8,000 by March 2020.

A Reddit user @alkalinegs commented:

“if you look at the last golden cross early 2017 it took a few days till something happend. death cross 2018 even resulted in a bulltrap. -> dont expect an immediate reaction.”

Quite a few people use the exponential moving averages and disagree with the use of Simple Moving Averages, which is opinionated. Another Reddit user, @DeliciousPayDay commented:

“I strongly disagree. SMA 200 is more important and everyone in crypto looks at it. After breaking the 200MA at $151 ETH went straight to $180 before being sold off, and bounced directly off the 200MA the next day turning resistance into support. The 50/200 golden cross just happened on the SMA and the last time that happened ETH went from $12 to $1400.”

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