On 29th August, the CNBC Fast Money panel interviewed Michael Moro, the Chief Executive Officer of the investment and merchant banking firm, Genesis Capital. During the discussion, Moro speaks about the Bitcoin price breakout of $7,000, the catalysts involved in encouraging the coin to rally up, the sell-off activity in the market and more.
Last week, the cryptocurrency space broke out with the news of the US Securities and Exchange Commission [SEC] rejecting nine Bitcoin ETFs. Moro stated that this rejection led to the increase in the short interest across the exchanges as well as the lending activity witnessed by his investment firm. He added:
“Once the news broke about the SEC rejection and the price actually held, we didn’t see the 5%, 10% or 15% sell-off that you’ve seen in previous rejections and that the technicals at right around the $5,800-$5,900 levels held. So I think the bears have realized that they’ve run out of steam. So we also saw on the spot trading side is right around the 6k level, very few sellers.”
Regarding Moro’s call that the next stop for Bitcoin will be around $10k and the catalyst to push this speculation, the crypto-trading expert said that the market growth for the coin is going to be slow and relaxed. He speculated that the price will behave less violently, for instance, a minor swell of 5-10%.
Moro believes that the market expectations for the SEC to approve the ETF are lowered, thus muting the market sentiment and providing an overall healthier outlook for the next 12 months.
Next, he speaks about the recent trend of sellers and buyers wherein the traders sell at the first Bitcoin pop that happens. For instance, those who managed to buy at $6k in the last two weeks are ones selling in the last 24-hours. According to Moro:
“The question is are the Bulls here to stay. We haven’t really seen the strong buy-side demand yet coming in, even though there have been sell side interest in the last 24-hours. So I think the question ultimately is is the marquee going to head back down to the 6k level simply because the bowls are so waiting to see is the 7 K really going to hold and then see where we go from here.”
He concluded his viewpoint by implying that the market sentiment will see a turnaround if the Bitcoin market is able to defend its mark of about $7,150 for the next week.