Bitcoin is having a nice start to 2019, and its recent positive movement could set it up for a rally stretching to 2020, Panxora CEO Gavin Smith believes.
Panxora allows investors to use their cryptocurrency to trade in global markets, so assume Mr. Smith is closely watching the market. Currently at USD $4,024 as of press time, it is nearing a key level, he believes.
“A key level will be $4300, if Bitcoin breaks above this, we could see a move to at least $6000. This move could be exactly what the market needs to break out of its current funk and see further constructive moves.”
Negative sentiment could be a positive driver, Mr. Smith added, because it can leave the space’s true adherents alone to innovate.
“Negative market sentiment could also bode well. The number of people expecting Bitcoin to go up in value is at an extreme low. Institutions are pulling back from the market and the general enthusiasm for investing in the cryptocurrency market has considerably diminished. Now that the opportunists who saw cryptocurrency simply as an investment prospect are exiting the space, serious businesses have some breathing room to focus on its development in a more constructive way.”
Broader macro-economic conditions could derail the rally, Mr. Smith worries.
“The one area of concern remaining is the broader macro-economic backdrop. We are entering a period of massive global tightening in credit conditions. In addition to raising interest rates the central banks have either started or are starting to reverse the QE bond purchase programs that followed the 2008 financial crisis. This will drain liquidity from the global system.”