Bitcoin has experienced a wretched 18 months, which witnessed approximately 80 percent wiped off the flagship crypto’s price. But this well-documented ‘crypto winter’ may have actually disguised bullish signs for BTC. And this week’s price spike may only be the beginning of another bitcoin bull run, eToro’s senior market analyst has revealed.
Cryptocurrency expert Mati Greenspan told Express.co.uk what happens in the short term is not always reflected in whats is happening in reality.
He said: “The ‘crypto winter’ saw the bitcoin price fall from $20,000 all the way down to the bottom of $3,100.
“But the entire time people continued to build-up the industry and the infrastructure.
“This is a market cycle that has happened with bitcoin five times already, where we have seen incredible interest, press and hype and people rushing in, FOMOing in to buy bitcoin.
“And then once that bubble bursts and people start selling out, that is when we see the real industry growth and then the cycle starts to repeat itself.”
EToro analyst Mr Greenspan points to the first such crypto cycle, which saw bitcoin’s price jump from 8c to $2 and then crash back to 30c.
And if this pattern holds, investors may not have long to wait for a another BTC price spike.
He said: “If that happens again, we would be looking at a price of $50,000 or $100,000 in the next run – as long as the cycle continues.
“I am not saying whether it will or not but in my mind bitcoin has the potential to do another five or six cycles before it reaches full market penetration.
“The industry growth is seen very clearly if you look at the people being hired and the rising salaries.”
A recent high-profile example of returning confidence was venture capitalist Andreessen Horowitz’s announcement of a billion dollar investment into crypto.
And eToro themselves have also…