Mati Greenspan, a senior market analyst at eToro, spoke about Bitcoin and expressed his views on what the next year could mean for cryptocurrencies.
In a Cointelegraph interview, Greenspan said that the volatility of Bitcoin during December last year was far more than it is now and that it has increased a bit after Bitcoin had a breakout at the $6,000 level. Referring to that level, Greenspan said:
“Price action has a way of perpetuating and fear starts building up and then people say, it’s because of the Bitcoin Cash hard fork, it’s because of the SEC, it’s because of Tether. All of those stories add to the fear. But really, what we’re seeing is a simple technical breakout to the downside and not a break of the crypto industry, which is very strong at the moment.”
Furthermore, Greenspan said that the action in the cryptocurrency market had been driven by the technicals rather than the fundamentals and that price action is influencing investor sentiment. He added that “investing is a waiting game” and that money in cryptocurrencies or stocks would be made only while waiting.
Since the price of Bitcoin and other cryptocurrencies have fallen down by a massive amount, Greenspan said that institutional investors and experienced players are getting into the market as they believe this is the right time to invest.
Moreover, the eToro analyst, referring to the current bear cycle, said:
“Bitcoin has gone through various boom and bust cycles over the course of its short history and a lot of the time we see bull cycles where we see the market going up by a 1,000%, 10,000% in a single year or even within a few months. And then after that type of growth, you generally need to see a pullback.”
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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