|Aug 17, 2018 03:09 PM||By: Ben Noble | 13106 Views|
Another CNBC Fast Money appearance for Bart Smith and this time he examined the Bitcoin Purgatory. His conversation was insightful as the general question surrounded the discussion of whether demands to see the different hellish drop before different come back with reinforcements.
Bart Smith, head of the digital assets division of the global investment market monster Susquehanna International Group, reiterated the fact which he had said previously, that Bitcoinis a necessary element of modern society but now its “show me” time for the cryptocurrency. He stated that there had been a bear action which going on the market and the coin moves upwards whenever there is news of something being an important catalyst, and then it moves downwards to make a new low once the dust settles. According to him, whatever the growth catalyst may be, it needs to address for bitcoin to break out and till the time that doesn’t happen the stagnancy will remain.
“We’re right back to where we were here. I was here a month ago when we were out on this is a bear market gathering until we break to it to new highs.”
Considering that the market is stuck between 6000 and 8000, he announced that the news around bitcoin needs to make a further significant impact.
To explain the “Show Me” mode, Smith announced that he was offended that a piece of news as big as Intercontinental Exchange opening the space dint make an impact on the price. But that what makes him understand that once this news materialized, there could be an influence.
On being questioned regarding the Bitcoin ETF, Smith announced that a US SEC-registered Bitcoin ETF could have a tangible effect on the prices of the Bitcoin. He understands that the ETF is something that would be driving money into the cost of Bitcoin and unquestionably will take the values skywards, but it’s not going to be easy. Even though the SEC may establish the BTC, every broker-dealer may not be allowing its clients to trade in it. According to Smith
“Every Broker-dealer and Investment house has a record of security that their investors can buy and so it some points you might be able to buy.” “So, it depends on where you have your brokerage account and whether you can get entrance to it.”
He also stated that Jamie Diamond of JP Morgan announced that they’re not going to let their investors invest in Bitcoin. So, if one has a broker-dealer relationship with JP Morgan, the ETF may yet be out of his reach as JP Morgan may not provide services to buy it.
Maintaining his “Show Me” mode theory, Smith told that according to him only the approval might not have a more critical price impact. The price impact would just come in when the ETF’s gets registered, begins trading and finally built volumes. Unless every news of ETF approval and denial will keep beating the prices between the range of USD 6000 and USD 800.
“When they (exchanges) register those (Bitcoin ETF) and when they (Bitcoin ETF) trade and when volumes are high, I think the business will come following in.”
Bart Smith appears to have got it right; the price influence would be felt only when things materialize in the crypto space sooner than the news of something happening would.