If investors can cope with the massive double-digit price swings in the cryptocurrency markets, they will eventually prevail, asserted the President of Bianco Research, Jim Bianco. He also admitted to owning ether instead of bitcoin, as he sees more potential of surging higher.
The Volatility in Crypto Markets is to Be Expected
The cryptocurrency space is known for its enhanced price fluctuations. Doubled-digit percentage drops and increases are nothing new, and the past several weeks reaffirmed this narrative.
Bitcoin stood around $50,000 before the bears took control, perhaps prompted by negative news from Elon Musk and China, and plummeted its value hard. In a matter of days, BTC bottomed at $30,000 before it recovered $10,000 in hours.
The altcoins had it even worse with numerous price slumps of 50% or more. Although such developments could lead to substantial losses and metal disruptions, Jim Bianco, the President of Bianco Research, believes those who live through them will eventually prevail. Nevertheless, he warned that the market will most probably go through such fluctuations in the future as well.
“But you’re going to have to stomach through much more of what we saw in the last week coming in the next several months or year or so.”
He outlined the significant potential of the crypto market but noted that traders with an “out-of-control casino” mentality are the real problem. As previously reported, the latest crash was most probably caused by too many leveraged positions, and traders saw billions of dollars liquidated in days.
Bianco Owns ETH, Not BTC
Bianco said he entered the cryptocurrency space back in 2017, just prior to the parabolic price increase, which saw BTC jumping to $20,000 and ETH reaching $1,400. He currently owns a “basket of cryptocurrency assets,” but, interestingly, not bitcoin.
Instead, he has focused the most significant portion of his portfolio in ether due to his belief in the asset’s future performance.
“Some of these coins like Ethereum are going to be a low higher way down the road.”
Nevertheless, Bianco indicated that people should have some exposure to the cryptocurrency market as it’s more correlated to other risk assets, including stocks.
“That wasn’t the case three or four years ago. But it is the case now. If we were to get higher financial market volatility either in the stock market like the VIX index, that could help the cryptocurrency as a belief, yes, we need a new fix, and this is the fix.”
Featured Image Courtesy of FuW
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.
Credit: Source link
