Bitcoin on Its Way to $8K, Next the Moon? | Crypto Markets

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 is also up 34% on the week, 54% on the month, and 5,600% 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're going 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, $1,000 in one weekend, in your memory?

Oh, I don't know. I remember that 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, if that makes sense?

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. I mean, for example, I mean, for when it went from 8 cents up to $2.50, 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. That's what it does. It just, 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 ever haven't been minted yet. So, you know, of the remaining, you know, 13 million coins, a lot of people are hodling, too. They're holding it long term, so there's 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 chatter in the crypto community that it would lead to a surge, and it slightly did, 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, you know, 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 alt season, which was, you know, because when we. When we go from crypto winter to. To an eventual crypto summer, you know, winter doesn't change to 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 beginning of February, when we saw a massive surge in the altcoins, until April 2, when we saw bitcoin surging, this entire range was kind of alt season, where a lot of the altcoins were outperforming. And 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 2 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. You know, 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, I mean, 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? 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. There's a lot to be thankful for in crypto right now.

There's.

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 April 3, April 4, 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 stick. I'm sticking by it 100%. Given that we could see a retracement here, I think that that would not at all, you know, be a terrifying experience. We've come up a lot seeing some people take some of their profits off the table. You know, 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 9300, 9400 area, so that's quite a ways to go.

And again, I'm Molly Jain 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 Digestion. 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 247 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. Cointelegraph, like subscribe and Hodl.