Bitcoin (BTC) is currently sitting at its lowest point in a year, going from a low in volatility to a full-blown tantrum in a matter of minutes. The bears may be out in force today, but what are investors and traders saying about the future of cryptocurrency?
Brian Kelly, an avid trader on CNBC’s Fast Money, broke down the so-called ‘crash’, calling it “short term”:
after explaining the situation and equating it to the Bitcoin cash fork, Kelly said that believes it to be a “short-term type of event” and even an “opportunity” to buy. Having said this, CNBC’s Fast money has had a knack of being consistently wrong about predictions in the past…
Travis Kling - former equities portfolio manager turned crypto hedge fund manager - believes that this break might be good for the wider cryptocurrency space:
This BTC break is good for the space.— Travis Kling (@Travis_Kling) November 14, 2018
Should induce more capitulation in down-market cap names which we have to see to get on better footing for a recovery.
BTC holding in was giving folks hope to hold on to their shitcoin bags for a broad-based pump that won't come. Let em go.
Indeed, this sentiment has been echoing around the crypto space for many months starting back in May. Sebastian Markowsky, Director of GP Bullhound - a technology investment bank - stated that a “heavy correction” could lead to the mass wipeout of cryptocurrencies, adding that the fallout of this would set the proverbial wheat from the chaff and that survivors growth potential would be “unprecedented”. Could it be that we’re finally seeing this correction?
This was reaffirmed by chief strategy officer at CoinShares, Meltem Demirors, who went on CNBC to offer her point of view on the unfurling situation.
Demirors, started by conjecting that the drop may be due to institutions “de-leveraging” due to the volatility surrounding the BCH fork. She continued to add that Bitcoin still holds market dominance and that altcoins were in the midst of a “liquidity crisis”, with very little trading volume and some altcoin prices down 95%.
Demirors, foresees a cull of these altcoins, auguring that “some of these assets will get marked to 0”. Demirors compared the current market to the dotcom bubble, (as it so often is) by citing the plethora of companies which went from hero to zero during the 2000’s boom.
continuing with this analogy, Demirors relayed that there may be a “first mover advantage” stating that “during the dot-com boom companies that were created in the first 6 months, survived” giving some hope for bitcoin as well as other established projects and altcoins.
Read more: Report: Cryptocurrencies could see 90% correction within the next 12 months; The Bitcoin Cash civil war: Chain split or consensus?; 4 Reasons to be positive in the midst of the crypto "crash"; Bitcoin crashes below $5,800, market loses $10 billion in 1 hour