“No need for concern over BTC price drop” Jackson Zeng, COO Caleb and Brown
Jackson Zeng spoke with Coincast TV reporter Heidi Cuthbert about the direction of bitcoin, the recent price fall in Ethereum and the Future of Altcoins. Watch the interview on Sky News Business.
Transcripts from the Interview:
What are some industry insights into the price of bitcoin?
We’ve seen a fairly sharp drop in the price of bitcoin catalysed by the SEC rejection of the Winklevoss twins ETF. However, I don’t think the price reaction is a major concern at all because there is still a CBOE bitcoin ETF as well as a number of other bitcoin ETF application due for ruling in late September.
Institutions have a very real appetite for bitcoin exposure as a hedge against systemic risk and are just waiting for a way to get access to that without the self-custody risk.
Bitcoin price commentary / Where do you see Bitcoin’s price going in the near term?
Bitcoin is currently in a price consolidation phase with extremely strong support at the USD $6000 mark, Bitcoin’s price has reached or gotten close to USD $6000 4 times this year and each time that has occurred, within a 30 day period, Bitcoin’s price has shown at the very least, a 30% recovery. So at this price, I’m bullish on Bitcoin.
Does the price fall of Ethereum have to do with ICOs selling their Ethereum capital raises?
Yes, I think ICO liquidations play a significant role in the price drop of ether. If you consider a project that has raised $10 million dollars when Ethereum was, say $1000 in February, and now it’s $300, the company’s funding has just been cut by 70%. That is a very big problem for a start-up. Many projects that are funding now are opting to liquidate the Ether immediately after raising it, so they have the full amount of capital they planned for, and they don’t have to worry about the price of Ether when they should be focusing on building the products that the community has funded.
What are you seeing in the future of Altcoins
During 2017 when the cryptocurrency space was picking up public attention, the rate of increase in attention far surpassed the amount of developers actually working on products for the crypto space, causing an oversubscription of investors into the few projects that were available. We are currently above 50% Bitcoin dominance, the highest it’s been since December, which demonstrates a lack of confidence in Altcoins. I think now we’re going to see a consolidation of money into the Altcoins that provide real use cases with a reasonable roadmap of commercial adoption in the next 5 years. The rest will most likely disappear.
Jackson Zeng is the COO at Caleb and Brown is available to guide new and seasoned investors.
About Jackson Zeng:
Jackson has five years of trading experience in the cryptocurrency space and founded Bit By Bit Capital, one of Australia’s first private trusts investing in cryptocurrency.
Call Jackson on +61 1800 849 149 or Contact Us to discuss further.
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