The BTC price last week painfully reminded investors of the volatility of crypto currencies. The fall in the price of Bitcoin & Co. was therefore the dominant theme in last week’s comments.
Brian Armstrong, CEO of the crypto exchange Coinbase, remains calm in view of the recent price events. He can take a positive view of these “correction periods”, because:
“In such correction periods many people disappear who have entered crypto for the wrong reasons or just wanted to make a quick dollar – they lose interest”.
That’s what the Coinbase chief said on September 7 in San Francisco at TechCrunch’s “Disrupt” conference.
Myth of Bitcoin formula
Panos Mourdoukoutas of Forbes sees the last dip of the Bitcoin formula exchange rate less as a correction than as proof that Bitcoin formula scam does not have what it takes to compete with the US dollar. This is particularly true in view of the currency crises in emerging markets:
“Like Turkey and Argentina, whose currencies have collapsed in recent weeks. Both countries have a high debt burden in US dollars. And their central banks have lost their independence to fight inflation.
However, the BTC rate has fallen with the currencies instead of skyrocketing from an escape of inflation-stricken citizens into crypto currencies. In Turkey, for example, people are more likely to have entered gold than cryptos, which is evidence of increased imports.
The “global currency Bitcoin” describes Mourdoukoutas as a “myth”.
No ETF? No wonder!
Andrew Pompliano, founder of Morgan Creek Digital, sees the fall in the share price as an example of why regulatory authorities have been so sceptical about Bitcoin ETF.
“You want to know why there is no crypto-ETF yet? A $100 million Bitcoin has just been thrown onto the market within 10 minutes. That caused the BTC price to drop by 5 percent. Some say volatility, others manipulate. Nobody knows the truth”,
The great whale death?
The Bitcoin Exchange Guide speculates about the possibility that the “last whales” might be in the process of turning their coins into money in order to switch to less risky forms of investment:
“Some people theorize that they are liquidating their assets and moving to more stable markets such as real estate, while others believe that they are using the market.
Investor Scare Volatility
Trader Brian Stutland sees the high volatility of Bitcoin as an investment barrier. He also expressed CNBC’s hope that lower volatility would mean fewer investor jumps:
“I want this volatility to be reduced a little to give people a little more comfort because, as you can see, it supports investors. When we reach these certain technical [price] values, people want to get out immediately.”
Bitcoin price soon back at 7,250 US dollars
While Stutland attests the big crypto currencies like Bitcoin and Ethereum good chances of survival, he sees black for most Altcoins in the long run:
“Bitcoin, Ethereum and some other leading coins will remain. Many of the Altcoins will disappear.”
With regard to the rumors about Goldman Sachs – which have now been refuted – and the abandonment of their crypto trading desk, Stutland is wavering away:
“I’d say forget these guys. Bitcoin was created to handle transfers away from the banks. We don’t need them, and in that sense I’d assume it’ll go higher again.”
Stutland is optimistic that the BTC rate will climb back up to 7.250 US dollars in September.