Hi, I’m Giovanni, and today we are with senior
market analyst Mati Greenspan from eToro.
Hi Mati, how are you doing today?
Hey, how’s it going?
So Mati, we have seen in the last few hours
that most cryptocurrencies posted moderate losses.
Do you think it’s a correction
or we should be worrying about it?
Not at all.
I think that that’s actually kind
of zoomed in a little bit too much.
You’ve got to zoom out a little bit, because
if you’ll notice the trend overall, this is
the declines that you’re talking about, right,
so it’s not too much.
What we’re seeing now actually is kind of
an upward consolidation pattern.
And in the video last week we discussed the
possibility of a Bart Simpson pattern emerging,
and a lot of the time what happens in the
crypto space is you’ve got a surge upward
and then this kind of consolidation which
kind of looks like Bart Simpson’s haircut
and then a surge down.
On Friday we actually saw a continuation upward.
So now what we’re looking at
is more of an upward trajectory.
Now instead of looking like Bart Simpson’s
haircut, because we had that continuation
in the middle of April and then another continuation
last Friday, now it looks like we’re actually
have an upward trajectory
which is quite a bullish pattern.
And even if we come down to the bottom line
here it doesn’t break that pattern.
So, certainly, past performance is not an
indication of future results, not ever, not never.
But as far as technical analysis is concerned
this is a bullish sign.
And what do you think about altcoins, because,
as far as I know, they are underperforming Bitcoin.
Do you think it’s like a trend which will
continue and what do you think is the cause of it?
So yeah, we’re just coming off
the back of alt-season.
On April 2nd that surge put the focus back
onto Bitcoin and we can see that Bitcoin is
actually kind of in the
driver’s seat once again.
A lot of the time what happens is because
most of the volumes in crypto these days are
on exchanges that are crypto to crypto
rather than fiat to crypto.
And we’ve seen that trend kind of growing.
So, as that happens, certainly we know that
there’s a correlation where all of the cryptos
tend to move in the same direction, but of
that you’ll have times where Bitcoin is the
leader and then there’s times where Bitcoin
is the laggard, in this case we can see that
Bitcoin is the clear leader at the moment.
Okay, so now let’s talk
a little bit about the latest news.
Bitfinex is going to raise $1 billion for
its IEO, but a lot of people are quite skeptical
about it, because of the latest
scandal surrounding the firm.
So a lot of people are saying that this is
going to be a bailout and not an IEO.
What do you think, they are going to really
manage to raise such a big amount of money
despite the crisis?
I’m quite skeptical that they’ll be able to
hit that target at the moment.
If the founders were trying to raise that
kind of money for an actual project, they
might be better off just doing it under a
I’m very skeptical of the way that they’ve
announced this, as far as I saw, the announcement
was made on some sort of a WeChat group.
Not the traditional kind of press release
that you’d want to see when somebody’s trying
to raise that type of capital.
The amount in question is also very suspect,
because they were reportedly missing $850 million.
So if you say okay, a billion that’s like
$850 million plus a little bit of spare change.
I think it’s going to be very difficult for
them to raise that kind of money with the
sentiment being as it is at the moment.
At the moment Bitfinex and Tether are in so
much trouble that you can see that there’s
a premium that’s opened up across the exchanges.
So this site, Cryptowat.ch, allows you to
track the price of Bitcoin across different
exchanges, and Bitfinex you can see is right
now trading around $6,000, whereas on other
exchange it’s around $5,630, $5,640, which
means that if you want to buy Bitcoin on Bitfinex
at the moment, it’s going to be about
$320 to $360 more expensive.
And the reason for that is because of the
lack of trust in Tether, the lack of trust
in Bitfinex in general, clients are trying
to bring their money out.
And when they do that, basically the demand
for Bitcoin actually goes up.
So the important thing to remember here is
not the amount, it’s worthwhile keeping an
eye on the amount.
It seems that the premium is not able to exceed
about $400, because then you’ll get like some
arbitrage traders, who will sell or who will
bring their money into Bitfinex in order to
arbitrage that premium.
But the important thing to remember here is
that, if there is any sort of erosion in the
trust of Tether or Bitfinex, there’s $2.8
billion in Tether’s market cap at the moment.
So that money is most likely to cause buying
pressure on Bitcoin as we’re seeing here.
Thanks a lot.
So now talking about the news
about Facebook Coin.
We know that this is a project that it’s very
real and it’s being developed right now.
So what do you think, Facebook Coin is going
to be a competitor of Bitcoin or they are
going to coexist peacefully, and do you see
any impact on the market regarding Facebook Coin?
Well, that’s an excellent question Giovanni,
and the answer is – we simply don’t know.
The facts that we have on the ground is that
Facebook has put one of their main managers
in charge of this project, that they have
about a staff of about 40 employees working
on a blockchain project.
There have been leaks, most notably by Bloomberg
and The New York Times who quoted sources.
Now, obviously, they weren’t able to bring
those sources forward to public, so we don’t
know who said what exactly.
But we have to realize that the New York Times
or Bloomberg aren’t going to run with a story
without actually doing their homework.
So we can probably assume that the narrative
out there is correct, which is that they’re
working on some sort of a peer-to-peer coin
that can be sent over WhatsApp.
This is kind of similar to what Kik is working
on with Kin, and what Telegram is working
on with their TON or GRAM coins.
So this is most likely what we can expect.
The question is going to be about decentralization,
we don’t know how decentralized it’s going
to be, as Facebook is quite
a centralized company.
We also don’t know how it’s going to interact
with other cryptos, how they’re going to interact
with the local regulations, if they want to
have a borderless payment system, that means
that Facebook is directly going to have to
answer to regulators across the globe as well.
So at the moment it’s really too soon to kind
of speculate what that’s going to look like
and how it’s going to interact with the crypto
market as we know it.
Okay, and now I wanted to ask you something
about the upcoming Consensus event.
So in the last few years we always saw the
price of Bitcoin rising just before the event
took place except last year.
So what do you think is
gonna be the pattern this year?
So the Consensus effect is basically a theory,
because so many people in the crypto industry
get together, it can actually have
an impact on price.
Now prices in crypto, it’s not too far off
the truth, because a lot of prices in crypto
are actually relying on network effect.
And when you get so many people who are part
of the same network and then they are able
to strengthen their connections by meeting
face to face, this actually strengthens the
So yes, I do believe that the Consensus gathering
where so many people are going to be able
to see each other, shake hands, work on deals
that they’ve been planning on, start setting
things in motion, that certainly strengthens
the crypto community and the crypto environment
as a whole.
Whether or not that translates immediately
into price, we’ll never really know until
So let’s talk about Fidelity.
Fidelity is going to introduce crypto trading
for institutional investors, this is like
very big news.
What do you think,
what’s going to be the impact of that?
That’s a good question.
Fidelity has been working
on this for quite a while.
We know that they’ve done a soft launch, so
they probably on board, and some of their
customers who are most interested already.
It seems very positive
from everything that I see.
I mean, they’re certainly not the first institutional
player to offer crypto for their clients,
but they’re actually
very likely to be the biggest.
What the demand from their clients is going
to be – we’ll have to wait and see.
But I think that this is something that can move
the liquidity of the entire market significantly forward.
So, how much money from institutional investors
do you see coming into the space after Fidelity
will launch its service
for institutional investors?
Well, we can really only speculate on that.
I know that they have upwards of a trillion
dollars under management.
Let’s say even 1% of that, if that goes into
crypto, if all of their clients diversify
with 1%, I think that’s maybe a bit of aggressive
to think about, but if we think about in those terms,
that itself could drive the price of
Bitcoin up a $1,000, $2,000 easily.
The question though remains:
are they going to see that kind of demand?
My feeling is that it’ll take them a while,
before they’re able to explain to their customers
how this is beneficial for their portfolio,
and then it’ll take a while before the crypto
market looks attractive enough
for those customers.
It could all happen at once, it could happen
over time, it is worth keeping an eye on.
We were here with Mati Greenspan from eToro.
Thanks a lot, Mati, and see you next time.
Yeah, thanks a lot for having me,
have an awesome week ahead.
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