eToro Analyst: Sideways Movement Will Increase Cryptocurrency Adoption
The cryptocurrency market is continuing to experience downtrends, which pushed the market capitalisation below $300 billion during early morning trading on Wednesday. Yet, despite this, one analyst is confident of the market.
According to Mati Greenspan, senior market analyst at eToro, the price volatility of cryptocurrencies is a good thing for advocates of the market, according to a report from Market Watch.
“At this stage price doesn’t really matter,” he said. “The more sideways movement will increase the likelihood of adoption. We are seeing a pickup in day traders, more people playing the range, which helps the adoption of cryptocurrencies.”
This is despite the fact that market prices have seen a drop in value over the last few weeks. Market factors such as increasing pressure to regulate the market in addition to major companies announcing advertising bans related to the cryptocurrency market have seen coin values fall.
On Tuesday, social media giant Twitter’s ban on digital currency adverts became effective, which saw market prices slump as a result. Twitter’s ban follows on from the likes of Facebook and Google.
Despite the downturn in market values, there are many who believe in the future of the cryptocurrency market.
Thomas Lee, head of research at Fundstrat Global Advisors, was reported as saying earlier this month that he believes bitcoin has the potential to reach $91,000 by 2020. At the time of publishing, the number one digital currency is trading at lower than $8,000, at $7,947, representing a near 11.50 percent drop in seven days, according to CoinMarketCap.
Previously, Fundstrat has said that when bitcoin is experiencing an index lower than 27 it sees the best 12-month performance. On the 9th March, bitcoin was at 18.8, the lowest it has been since the 6th September, 2011. It remains to be seen whether or not market prices improve and whether they can achieve new all-time highs from what they have already achieved.
For now, though, many will be watching the market to see what direction it will decide to take. Many, however, will be hoping for an upward trajectory that hasn’t been seen since the end of last year.