Mati Greenspan, a senior analyst at eToro and a well-known bitcoin expert, told the Express in an interview that the correction of bitcoin from the $20,000 mark was expected, and he sees the bitcoin price surpassing its all-time high in the future with absolute certainty.
“I don’t know what’s going to happen in the future. I’m really not a fortune teller or anything like that. I believe that more than fear of regulation that decline from the $20,000 peak was more of just a normal retracement,” Greenspan said, emphasizing that an abrupt increase in value of an asset is often followed up with a retracement.
“Whenever the bitcoin price moves and jumps into a new order of magnitude, we need to see some sort of retracement on that. It’s the same thing that when it jumped up from eight cents to $3.50 then it had a retracement back to a dollar. That’s a very normal thing after that kind of leap. So if we look at it now I believe we are about five or six percent up over the price a year ago,” he added.
Several analysts over the past few months have stated that the correction of bitcoin from $20,000 to $6,000 is reminiscent of its slump in 2014, during a period in which bitcoin failed to recover for over 12 months following an initial 80 percent decline in value caused by the now-defunct cryptocurrency exchange Mt. Gox.
However, the market is in a different state and the global cryptocurrency exchange market has a daily trading volume of $30 billion. The liquidity and volume of the market are incomparable to the levels in 2014 and the involvement of institutional investors and large-scale retail traders has led to various public instruments such as bitcoin futures that have allowed the market to mature.
Most recently, CCN.com reported that Goldman Sachs, one of the largest investment banks in the finance sector, has officially decided to launch a cryptocurrency trading desk after teasing its entrance into the bitcoin market for well over six months.
Rana Yared, an executive at Goldman Sachs, said that most traders and investors at Goldman Sachs remain skeptical towards cryptocurrencies. But, due to overwhelming demand from its clients and the willingness of its investors to own bitcoin as an alternative store of value, Yared said that the bank had to start facilitating the demand for bitcoin.
“I would not describe myself as a true believer who wakes up thinking Bitcoin will take over the world. For almost every person involved, there has been personal skepticism brought to the table. It resonates with us when a client says, ‘I want to hold Bitcoin or Bitcoin futures because I think it is an alternate store of value,’” said Yared.
Greenspan, billionaire investor Mike Novogratz, and cryptocurrency investment firm Pantera Capital CEO Dan Morehead, along with many other major cryptocurrency investors have noted that the bitcoin price is likely to surpass its all-time high in 2018. Given its growth rate over the past month and its swift recovery, it will be possible for bitcoin to reach the $20,000 mark if it can sustain its trading and transaction volume.
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Last modified: May 20, 2020 8:49 PM UTC