Hi, I'm Molly Jane,
and Bitcoin had an amazing weekend.
It shot up $1,000 to trade around $7,800 at
recording time, which is 2019's all time high.
The top cryptocurrency also up 34% on the
week, 54% on the month and 5600% up over all time.
In order to understand where Bitcoin is going
and what's going on with the altcoin market
as well, we spoke to our regular correspondent
Mati Greenspan.
Big question of the day:
why is Bitcoin shooting maybe to the moon?
So it is a good question, but I can't help,
but notice the irony, you know, for the last
few months we just keep doing these videos
going: when is Bitcoin going to surge?
When is Bitcoin going to surge?
And now that it's surging we go like:
Why is it surging?
Well, we know why.
I mean, the industry has been building up
very steadily over the last few years.
Adoption is growing, transactions on the blockchain
are growing, volumes are growing, people are
building the infrastructure.
It's not a wonder, the wonder was why did
the prices come down so much to begin with.
And now that we're looking at Bitcoin that's
below $10,000, people are seeing this as an
attractive price.
I definitely think so.
When was the last time that Bitcoin surged
this much a $1,000 in one weekend in your memory?
Oh, I don't know.
I remember the Q4 of 2017,
when it passed $5,000 for the first time ever.
$5,000 to $20,000 I think
was a really short trip.
I believe it was about two weeks.
That was probably the biggest surge in dollar
terms ever, but I'm pretty sure that there
were bigger surges in percentage terms.
Do you see any other similarities to that
2017 surge, besides the fact that it was a surge?
Yeah, I mean the similarity is clear.
This is Bitcoin, this is what Bitcoin does.
I mean Bitcoin goes through these cycles.
We've seen it go through these cycles all
throughout history, for example, when it went
from 8 cents up to $2 and 50 cents, you know,
that was a huge surge, but then it comes down
and retraces back to 30 cents.
So 30 cents, obviously, much higher than 8
cents, but it goes up, comes down.
It's what it does, it just has these incredible
movements and that's largely due to the rarity
of Bitcoin, that there's only going to be
ever 21 million bitcoins in the world, about
4 million of them are lost, about 4 million
haven't been minted yet.
So of the remaining 13 million coins a lot
of people are hodling too, they're holding
it long term.
So there is very low liquidity, and whenever
we see a strong surge in demand like this
it has the effect of sending up the price
exponentially.
So my question is, I remember last year around
Blockchain Week in New York there was some
sort of chatter on Twitter and chat in the
crypto community that it would lead to a surge
and it's slightly dead about two weeks after.
Do you think this surge has anything to do
with Blockchain Week or is that just again
people talking about nothing?
No, the Consensus effect is a very valid theory.
A lot of crypto pricing is based on network
effect.
We can see that most clearly in Dogecoin where
the coin itself doesn't have very much use
other than just people getting together and
sharing jokes online, but just that network
in itself has value.
So Bitcoin is a network and most of the value
that's derived in Bitcoin comes from that network effect.
So when you have so many people getting together
in the same place and talking about Bitcoin,
they strike deals, they embark on new partnerships,
they do product launches.
Things like that have a great way of increasing
and strengthening the entire network.
So whether or not that translates directly
into price, we can see that sometimes it does
more and sometimes it does less.
So my next question here has to do with altcoins,
because everyone is talking about Bitcoin
breaking 7,000, but less people are talking
about Ethereum getting closer to $200.
Why do you think that is?
So at the moment, Bitcoin is clearly in the
driver's seat.
We saw some sort of the alt-season, because
when we go from crypto winter to an eventual
crypto summer, winter doesn't change the summer
immediately, you have these days where things
are kind of rainy and then maybe sunny later
on in the afternoon and vice versa.
And what we had for the entire period from,
let's say, around the beginning of February,
when we saw a massive surge in the altcoins
until April 2nd, when we saw Bitcoin surging,
this entire range was kind of alt-season whereas
a lot of the altcoins were outperforming as
alternative investors were looking for more
bang for their buck.
They were looking for projects that are a
bit undervalued compared to the rest of the market.
On that April 2nd surge,
alt-season basically disappeared overnight.
We saw Bitcoin right back into the driver's
seat, and that's because it's the biggest,
because it has the most adoption,
the most recognition.
That's what people tend to gravitate to.
So I'm forgetting exactly who said it, but
someone earlier this week said that, we covered
it in Cointelegraph, that Bitcoin would continue
to surge, but altcoins like Ripple and Ethereum
would not, because they have not yet proven
their use cases.
Do you agree with that statement?
Not at all.
I mean look, you're trying to tell the future,
I don't really know, as an investor my general
theory is to have a bit of exposure on as
many different investments as you can.
So taking a look at my portfolio you can see
it very plainly as eToro is an open network
you can see my investments,
my crypto exposure is about 15%.
At the moment, Bitcoin is the largest crypto
that I'm holding, but just because of the
market conditions right now.
During alt-season
I was holding more Litecoin and EOS.
So those different projects, it's kind of
like getting in on the ground floor of something.
Obviously, there's an incredible risk to that,
because when something is less established,
there's less likelihood that it's going to
eventually succeed.
But sometimes with the higher risk that you're
taking comes much higher potential for rewards.
So, I guess one of my last questions is just
any future predictions, anything happening.
Will Bitcoin hit $10,000 this week or will
it go back to $3,000?
I just pulled those numbers out of nowhere,
but you can speak to it better than I can.
Yeah, definitely.
So there's a lot to be thankful for
in crypto right now.
There's a lot happening
on the fundamental side.
Fidelity for example, I think that that's
huge and that can all of a sudden open up
a world of new liquidity
and new investments into Bitcoin.
Just looking at the chart from my perspective I want to
call attention to the Fibonacci retracement line.
I tweeted about that line on April 3rd, April
4th, and say wait a second, we haven't come
to the first wall yet, where I see the first
wall is around $7,000 which is right about
where we're at now.
I did receive some scrutiny for this chart,
but I'm sticking by it 100%.
Given that we could see a retracement here,
I think that would not at all be a terrifying
experience, we've come up a lot seeing some
people take some of their profits off the table,
seeing it come back down to retrace,
$6,000 would be actually very healthy for the market.
That said if we don't see any sort of retracement,
we continue on up.
I believe that the next wall on the Fibonacci
line is around $9,300-$9,400 area.
So, that's quite a ways to go.
And again, I'm Molly Jane from Cointelegraph.
That was us talking to Mati Greenspan about
what happened to Bitcoin over the weekend.
Tune in on Sunday to see me again on this
week's Hodler's Digest.
Comment below what you think Bitcoin's price
will be within the next week.
Did you know also that Bitcoin's price is
going to hit the exact number of likes that
we get on this video?
So hit the like button right now.
This episode is sponsored by Trade Santa.
Trade Santa is a cloud-based trading bot.
Set it up in less than 2 minutes, trade multiple
pairs, choose between long and short strategies,
use tech analysis indicators,
and see your results in real-time.
Trade Santa works 24/7
to get you the profit you set.
The platform is already integrated with Binance,
Bittrex, Bitfinex and HitBTC.
The link is in the description below!
