Bitcoin Bear Market Has Seen No Abatement
Michael Moro, CEO of Genesis Trading, sat down with CNBC’s Squawk Box on Black Friday (November 23) to convey his opinions on the current status of the Bitcoin (BTC) and crypto asset market.
Providing investors with his insider expertise as the CEO of a Digital Currency Group subsidiary, Michael Moro explained that Bitcoin’s most recent drawdown, which had its origins in late-December, has had no abatement, or in other words, has been relentless. He then drew attention to the $5,800-$5,900 level of support, which BTC previously held three times in the past year but broke last week. He added that while institutional investors have bought in on the OTC side, retail crypto investors put a substantial amount of selling pressure on this non-liquid market.
A CNBC Squawk Box panelist then posed a tough question to Michael Moro, “how much of [crypto’s decline] been people getting out [of their positions] by force or by will in stuff that’s not working [for them]?”
Lending his knowledge as the showrunner at one of this market’s foremost OTC platforms, the Genesis Trading chief explained that a majority of early-mid 2018’s sell-off was catalyzed by traders nascent to this space, many of which bought their first Bitcoin during 2017’s jaw-dropping bull run. He added that this specific group of players has sought to liquidate their holdings, solely in a bid to lock in their profits or minimize their losses.
But, turning the question on its head, Moro then added that at his firm, which facilitates block purchase and sale orders from bigwig clients, traders, even those who purchased BTC in 2016, have held a majority of their holdings. This, of course, indicates that there are still a diehard group of believers, including himself, that have mounds of faith situated this innovation. He explained: