Stephen Innes, the head of trading at Asia-Pacific at Oanda, discussed the fall of Bitcoin and what it means for the cryptocurrency market in a recent interview. Innes compared the state of cryptocurrencies to the wild west show and said that we have to guard ourselves by taking a gander at the metrics, which show unquantified risk.
In an interview with Bloomberg, he said that Bitcoin [BTC] and other cryptocurrencies have not bottomed yet. Innes commented:
“Therefore, I don’t think any mature investors are willing to catch this falling knife and that tells me there’s more room to go and as soon as we hit some of these key round figured inflection points at $3,500 and $2,500. I think that’s like the psychological impact that will weigh on more inexperienced traders.”
He added that he is not against cryptocurrencies, but said that he was uncertain as to where these coins were headed and that he is long on the blockchain technology. According to Innes:
“Considering the momentum we’ve had over the past year, this price action is not positive and despite what soothsayers say, it’s not a good time to go in because we really can’t quantify what we’re really buying at these levels. This is the issue I have with with trying to understand coins at specific inflection points.”
Innes said that there wasn’t just one smoking gun that has caused the prices of Bitcoin to plummet below the $6,000 range; he said that there were a lot of factors contributing to it. He even considers the fork of Bitcoin Cash as a major proponent, along with SEC tightening its noose around cryptocurrency exchanges and ICOs.
He also added that the lack of involvement by major investment banks and even Wall Street is playing a role in the collapse of prices of Bitcoin and other cryptocurrencies.
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