Mati Greenspan: Bitcoin's rally above $12k is down to retail investors

26 Jun, 2019 | Updated: 26 Jun, 2019
by Will Heasman
Analysis
Mati Greenspan: Bitcoin's rally above $12k is down to retail investors

Within another of his daily newsletters, Mati Greenspan, eToro’s senior analyst, has suggested that that retail investors may have had a hand to play in Bitcoins recent rise above $12k; he also believes crypto summer is finally here, - time to get out the shorts and shades, just be careful not to burn …

Suns out gains out 

Greenspan relays that the 14% gains seen last night, which pushed Bitcoin into $12k territory, were a “clear indication of the extreme heat and the change of season.” However, the euphoria of summer can be “dangerous." 

It looks like the rejoicing can continue for a little while longer, as all the typical signals of “over-enthusiasm” aren’t present, signals which include too much web traffic, as well as congestion in the blockchain.

This is not alt season… 

While there has been a flurry of gains from altcoins across the board recently, including Ethereum - which is currently citing intraday gains of 11.4% - Greenspan warns that Bitcoin is still very much in control, with the Bitcoin dominance index at its highest point since 2017, and “rising fast.”

Greenspan states - citing data from Messari crypto - that Bitcoin volumes are actually higher than most of the crypto market combined.

Bitcoin can handle it!

Greenspan looks to the health of Bitcoins network, suggesting that it's managing to hold up despite the pressure from extremely high volume:

“Overall, the breakout last night happened on very strong volumes across the board,” notes Greenspan, “That includes exchanges, futures, and on chain transactions. Still, Bitcoin is handling the load with ease and the mempool's waters are fine. Meaning, there's absolutely no congestion in the bitcoin blockchain and there are very few transactions waiting to be confirmed.”

In comparison, the last crypto summer almost crippled Bitcoins network capacity, which has been since increased.

What caused this Bitcoin pump?

Crypto traders, yep... According to Greenspan’s data, Bitcoin’s demand is actually coming from retail investors.

The analyst points to Google trends which has been on a steady rise since the start of the year, however, the rise is nowhere near the levels it was at back during the last cycle, telling us that those buying are most likely already familiar with the space.

Greenspan also notes- using data from coinlib - that the majority of capital coming into Bitcoin and Ethereum, is flooding in from USDT.

“There is fresh fiat coming in, but it seems that most of the action is coming from money that's been sitting on the sidelines in stablecoins.”

Furthermore, the analyst points out that data compiled by CryptoCompare suggests that volume from crypto to crypto exchanges is growing faster than that of fiat to crypt exchanges.

Follow Chepicap now on Twitter, YouTubeTelegram and Facebook!

Chepicap is now LIVE in Blockfolio! This is how you receive our latest news in your portfolio tracker!  

Poll

Do you think Bitcoin is due for a correction?

(102 votes)

Add a comment

Check out the latest news

You will be logged out and redirected to the homepage