Bitcoin has experienced a wretched 18 months, which witnessed approximately 80 percent wiped off the flagship crypto’s price. But this well-documented ‘crypto winter’ may have actually disguised bullish signs for BTC. And this week’s price spike may only be the beginning of another bitcoin bull run, eToro’s senior market analyst has revealed.
Cryptocurrency expert Mati Greenspan told Express.co.uk what happens in the short term is not always reflected in whats is happening in reality.
He said: “The ‘crypto winter’ saw the bitcoin price fall from $20,000 all the way down to the bottom of $3,100.
“But the entire time people continued to build-up the industry and the infrastructure.
“This is a market cycle that has happened with bitcoin five times already, where we have seen incredible interest, press and hype and people rushing in, FOMOing in to buy bitcoin.
“And then once that bubble bursts and people start selling out, that is when we see the real industry growth and then the cycle starts to repeat itself.”
EToro analyst Mr Greenspan points to the first such crypto cycle, which saw bitcoin’s price jump from 8c to $2 and then crash back to 30c.
And if this pattern holds, investors may not have long to wait for a another BTC price spike.
He said: “If that happens again, we would be looking at a price of $50,000 or $100,000 in the next run – as long as the cycle continues.
“I am not saying whether it will or not but in my mind bitcoin has the potential to do another five or six cycles before it reaches full market penetration.
“The industry growth is seen very clearly if you look at the people being hired and the rising salaries.”
A recent high-profile example of returning confidence was venture capitalist Andreessen Horowitz’s announcement of a billion dollar investment into crypto.
And eToro themselves have also been building that throughout the bear market.
Mr Greenspan said: “I see at first hand at eToto, where we announced we are building a crypto exchange called eToroX, which is a crypto exchange and wallet for easy transactions of bitcoin.
“So the infrastructure is continuing to grow and anybody who is using price as an indication of growth in the crypto market is on for a surprise.”
Mati Greenspan also revealed another reason for optimism about bitcoin’s bill of health: the recent report about wash trading from Bitwise.
The eToro analyst told Express.co.uk: “Bitwise found through their research that about 95 percent of volumes in the crypto market are fake volumes.
“But although the report sounds kind of bad, it actually had a very positive ending, which is there are actually 10 exchanges which report real volumes and don’t engage in any wash trading.
“And of those 10 exchanges there is very little price difference between them, so we are actually talking about a market which is extremely clean.”
Published at Fri, 03 May 2019 12:42:00 +0000