In order to get a clear insight into the world of crypto and blockchain during these turbulent times for the industry, Newconomy got in touch with Mati Greenspan, a senior market analyst at eToro. Mati is one of the most respected digital market analysts out there. Thus, we want to use this opportunity to thank Mati for his time and valuable insights.
1) First of all, how would you describe 2018 from the market analysis perspective? Do you agree it can hardly be called a correction if the entire market is down 80%?
Last year was a time of extreme volatility, both in crypto and in traditional markets. Put into context, however, we can see that the markets have been rising non-stop for several years already and so a pullback is quite normal and even healthy.
For bitcoin specifically, these type of corrections have happened several times in the past where we see abnormal gains of more than 1000% in a short time and then monster pullbacks of 80% or even 90%. So this is really nothing new.
2) As everyone still speaks about the “crypto winter”, do you think the bottom is near or does the BTC has to dip below the $3,000 mark first?
For every winter there comes a summer. At this point, I think we’re probably in spring. This is when the strongest development happens, when all the newcomers who joined the market during the bull run turn into advanced traders and knowledgeable advocates.
Yes, we could see bitcoin dip below $3,000 but the price is really the least relevant metric for measuring industry growth at the moment.
3) Which digital currency do you see as the best equipped to make a significant recovery? Are you jumping on the bandwagon with Tron, as well?
The entire market is pretty low at the moment in my view. For the most part, I’m focusing on large-cap money coins. The dApp networks are in crazy competition at the moment so it might pay to hold a small exposure in the larger ones but it’s difficult to know which will be more prominent in the future.
Of course, it always pays to diversify your investments among many different assets, which includes both crypto and traditional markets.
4) Recently, we covered the story of JP Morgan’s senior officials reiterating their pessimistic stance on crypto. Do you agree with them to a certain extent?
They do have a few valid points of course. We’re very much in the early stages of blockchain and the internet of value. However, I do believe they’ve largely downplayed the potential benefits of blockchain technology.
The ability to move something of value across the internet without the need of a middleman is a game-changing concept.
5) A couple of days ago it was announced that Bithumb signed a binding letter of intent to merge with Blockchain Industries, which trades publicly on US markets. Do you think the reverse merger may become a trend in the future?
That’s one way to do it. The path forward for them is far from clear but this might end up being a worthwhile shortcut. Should they be successful in getting listed on the NYSE or the Nasdaq, I could certainly see some others in the industry going this route.