Another CNBC Fast Money appearance for Bart Smith and this time he discussed the Bitcoin Purgatory. His discussion was insightful as the discussion was surrounded around the proverbial question whether needs to see another hellish drop before another come back with reinforcements.
Bitcoin prices needed the delivery of catalysts to breakout
Bart Smith, head of the digital assets division of the global investment market giant Susquehanna International Group, reiterated the fact which he had stated previously, that Bitcoin is a necessary element of modern society but now its “show me” time for the cryptocurrency. He said that there has been a bear action which going on the market and the coin moves upwards whenever there is a news of something being a great catalyst and then it moves downwards to make a new low once the dust settles. According to him, whatever the growth catalyst may be, it actually needs to deliver for bitcoin to actually break out and till the time that doesn’t happen the stagnancy will continue
“We’re right back to where we were here. I was here a month ago when we were out on this is a bear market rally until we break to it to new highs”
Believing that the market is stuck between 6000 and 8000, he said that the news around bitcoin needs to make a bigger impact.
To explain the “Show Me” mode, Smith said that he was really surprised that a news as big as Intercontinental Exchange entering the space dint make an impact on the price. But that what makes him believe that once this news actually materialized there could be an impact.
Also, read: CBOE CEO Optimistic of Crossing the Line First in Bitcoin ETF Race
Bitcoin ETF could have a bigger impact but roads not easy
On being questioned about the Bitcoin ETF, Smith said that a US SEC-registered Bitcoin ETF could have a major impact on the prices of the Bitcoin. He believes that the ETF is something that would be driving money into the price of Bitcoin and surely will take the prices skywards but it’s not going to be easy. Even though the BTC may be approved by the SEC, every broker-dealer may not be allowing its clients to trade in it. According to Smith
“Every Broker-dealer and Investment house has a list of security that their investors can buy and so it some places you might be able to buy”. “So, it’s really depending on where you have your brokerage account and whether you can get access to it”
He also mentioned that Jamie Diamond of JP Morgan said that they’re not going to let their investors invest in Bitcoin. So, if one has a broker-dealer relationship with JP Morgan, the ETF may still be out of his reach as JP Morgan may not provide services to buy it.
Continuing his “Show Me” mode theory, Smith said that according to him only the approval may not have a bigger price impact. The price impact would only come in when the ETF’s gets registered, starts trading and eventually built volumes. Otherwise, every news of ETF approval and rejection will keep knocking the prices between the range of USD 6000 and USD 800.
“When they (exchanges) register those (Bitcoin ETF) and when they (Bitcoin ETF) trade and when volumes are high, I think the market will come back in”
Bart Smith seems to have got it right, the price impact would be felt only when things actually materialize in the crypto space rather than the news of something happening would.
Does Bart Smith’s theory of “Show Me” mode makes sense? Do let us know your views on the same.
The post The market is in “Show Me” Mode Says Crypto King Bart Smith appeared first on Coingape.
Written by Nilesh Maurya @ https://coingape.com/market-show-me-mode-crypto-king-bart-smith/ August 17, 2018 Nilesh Maurya