Bitcoinist has once again caught up with Mati Greenspan, Senior Market Analyst at eToro, the most popular social trading platform in the world with millions of users. Greenspan keeps a close eye on cryptocurrency markets and shares his thoughts on the recent Bitcoin price plunge and why he believes this current downtrend nothing out of the ordinary.
The price could easily reach $2,000 or $20,000 in the next two months. Neither would surprise me very much.
– Mati Greenspan
Bitcoinist: Most mainstream outlets seems to have parroted each other in attributing the drop in Bitcoin price to the Coinrail hack? Why don’t you agree with this?
Mati Greenspan: Financial media has a way of looking for a news event to tie to every market movement but this was particularly exaggerated. We’ve seen much larger hacks that were met with price surges. It seems that the authorities and exchanges did a pretty good job of limiting the damage from the Coinrail hack, and not a single bitcoin or ether was stolen, it was only alt-coins. This move was technical.
Bitcoinist: So why is BTC falling now? Do you see this as a correction or something more serious for Bitcoin?
Mati Greenspan: No, there’s nothing wrong with Bitcoin. In fact, this boom and bust cycle has repeated itself several times in the last few years. Here’s a graph from bitinfocharts.com that shows the historic price of bitcoin on a logarithmic scale. Log scale charts are great for showing percentage movements.
Pay attention to what happened in 2011. The price went from $0.30 to $30 in six months, then “crashed” back down to $2 before continuing upward.
Bitcoinist: A new research paper was just released suggesting Bitfinex was using Tether to pump Bitcoin price to $20K back in December. Is this more FUD or do they have a case here?
Mati Greenspan: It is difficult to determine at such an early stage. If there was any manipulation, the CFTC