Crypto

The price of bitcoin hit the bottom; The coldest days of Crypto Winter are over – Ran Neuner and Stephen Sidley

https://www.youtube.com/watch?v=/1-wFHKzihjE

According to Ran Neuner and Steven Sidley, who joined Kitco editor and chief host Michelle Macori in a panel discussion, the price of bitcoin fell below $20,000 in June, the worst days of the crypto winter behind.

Advertising

“We hit rock bottom in crypto,” said Neuner, host of Crypto Banter, a popular crypto-related podcast. “Cryptocurrency has experienced one of the largest liquidations we have ever seen. We had a $100 billion collapse of the LUNA ecosystem, which caused a cascade of sell-offs across the market.

Sidley, a professor at the University of Johannesburg and head of the university’s Blockchain and CryptoVerse research group, agreed with Neuner, but with some reservations.

“There are a few other things that jump out at us,” warned Sidley, who is also a best-selling author and director of Bridge Capital Future Advisory. “China’s decision to invade Taiwan is a possible Black Swan event. If Russia decides to take its aggression to nuclear weapons, that would be another Black Swan event… but in many ways I agree with Rahn that we are at the end of the [The Crypto Winter.]”

The Black Swan event is an unexpected event that has a significant impact on the markets.

Cryptocurrency winter thaw

Neuner, who is also the co-founder and CEO of Onchain Capital, used Bitcoin’s 200-week moving average to back up his claim that the cryptocurrency will continue its rally. The 200-week moving average is the longest Bitcoin uptrend indicator. The spot price of bitcoin has fallen below this indicator only three times: in 2015, 2020 and 2022.

“Every time [Bitcoin’s spot price hit the moving-average], it bounced back and delivered huge returns to investors,” Neuner said. “The times it went below the 200-week moving average were Black Swan events.”

However, Neuner said that investors should be on the lookout for a “macro environment” that could affect the price of bitcoin.

“As long as the macro environment continues to work, I think everything will be fine,” he said. “The chances are about 50/50 as to whether the Fed will increase [rates] 50 basis points or 75 basis points and I think the market has already appreciated these rate increases. As far as whether we have bottomed out or not, I can safely say that we have probably bottomed out in crypto unless another Black Swan event occurs… but I think we have had better days, colder in winter.

Bitcoin acceptance

Asset management company BlackRock recently announced a partnership with Coinbase to provide institutional clients with access to bitcoin. However, this does not seem to have had a significant impact on the price of bitcoin.

“In a bear market, the market does not react to good news and we know we are in fact in a bear market,” Neuner said. “We thought the news from BlackRock would shake up the market, but it’s not like that at all.”

Sidley added: “The BlackRock announcement was very profound. This [firm has] 10 trillion dollars of assets they manage.

However, he said that the price of Bitcoin has not changed since BlackRock’s announcement due to unfavorable legal changes.

“There is a regulatory failure,” Sidley said. “While BlackRock might say, ‘We’re going to give our customers access to [Bitcoin]’ now everyone is looking the other way and the regulators are trying to control it and slow it down.”

For Neuner and Sidley’s bitcoin price predictions, watch the video above.

Follow Michelle Makori on Twitter: @Michelle Makori

Follow Kitco on Twitter: @KitcoNewsNOW

Disclaimer: The views expressed in this article are those of the author and may not be those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a call to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article are not liable for any loss and/or damage resulting from the use of this publication.

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker.