Crypto Trader Still Long-Term Bullish After Bitcoin (BTC) “Bloodbath”
Crypto Market Conditions Are “Phenomenal” For Traders
Diversified trader Merlin Rothfeld, an investment strategist at Online Trading Academy, recently sat down with Cheddar, an up and coming fintech media outlet, to discuss the current crypto market. The outlet, who has developed a penchant for covering the Bitcoin (BTC) ecosystem, asked the trader, as it did with its other crypto guests, about his opinions on the market.
Interestingly, Rothfeld went against the crowd, claiming that the conditions in the crypto seas are “phenomenal,” alluding to the fact that BTC’s most recent tumult became perfect for scalping, a popular technique used by day traders.
Bitcoin Cash Hard Fork Was A “Systemic Issue”
Still, the multi-markets participant added that 2018’s crypto collapse actually stems from a “systemic issue,” drawing attention to the infrastructure that makes this nascent industry tick. Rothfeld explained:
The technology behind what makes cryptocurrencies popular is threatened right now. That’s the problem that I think is going to bring down a vast majority of cryptocurrencies.
Elaborating on his somewhat vague statement, the Online Trading Academy representative brought up November’s contentious Bitcoin Cash hard fork, which championed by the ABC and SV squads, explaining that such an event undermines decentralization, trust, security, and the immutability of transactions.
Rothfeld then noted that the U.S. Securities and Exchange Commission (SEC) likely took notice of the fork, as claimed by many on Twitter’s crypto ecosystem, adding that more downside could be in store as agencies see fundamental risks and stave away from the space.
This, interestingly, echoes comments made by Barry Silbert of the Digital Currency Group, who called the hard fork an industry “disservice.”
Bitcoin Crash Might Have “Shellshocked” Retail, But There’s Still Potential For Growth
Asked about consumers and crypto themselves, Rothfeld explained that as it stands, there are likely very few retail investors rushing to purchase BTC, which, interestingly, he classified as a “good thing.” The trader noted that when BTC is boiled down, it remains an extremely risky asset at its core, despite its unofficial classification as the world’s second coming of gold, yet in a digital form.
So, following up on his aforementioned comment, Rothfeld noted that there may be some silver linings to the “shellshocked” retail subset right now, presumably due to the unpredictability of cryptocurrencies. Yet, doing his best to keep an optimistic tone, the seeming Bitcoin proponent stated:
There could be some great buying opportunities coming up here. There are a few crypto assets that have great potential for the future, but right now, we’re in the midst of an absolute bloodbath and to be honest, we’ve seen in this in Bitcoin’s history before.
Many Cryptocurrencies Are “Garbage, Junk”
Although Rothfeld painted a positive picture for BTC, the trader went on to add that not all is well for a majority of cryptocurrencies. Expecting a “shakeout,” Rothfeld noted that many cryptocurrencies are “garbage, junk,” noting that like the Dotcom Bubble, there will be startups that are ousted due to their inability to innovate.
Yet, some say it’s unfair to equate cryptocurrencies to the Dotcom Bubble, in spite of the similarities as two ground-breaking industries with global potential. CEO of Ambrosus, Angel Versetti, for instance, told the Independent U.K. that when it comes down to the nitty-gritty, cryptocurrencies aren’t even in a bubble yet, claiming that once crypto assets reach a $15 to $20 trillion market cap, that’s when this decade-old market can pop.