Michael Moro, the CEO at Genesis Global Trading, recently told CNBC that if Bitcoin (BTC) maintains its value of around $7,150, then there’s a good chance that its price can reach the $10,000 mark again.
Commenting on the cryptocurrency’s price movements, Moro noted that:
“If the [$7,000] level holds, say for the next week, two weeks, the bulls will 100 percent be back. They will be more comfortable that the lows for the year are in, and that we are more likely to see $10,000, rather than $5,000.”
As CryptoGlobe recently reported, the US Securities and Exchange Commission (SEC) recently rejected nine Bitcoin ETF applications from ProShares, Direxion, and GraniteShares due to concerns regarding market manipulation. However, bitcoin didn’t selloff after the SEC denied these derivative-backed crypto ETF proposals.
Bears May Have “Run Out Of Steam”
This is a positive sign for bitcoin price, according to Moro, as he explained:
“Once the news broke about the SEC rejection and the price actually held, we did not see the 5, 10, 15 percent sell-off that you’ve seen in previous rejections. So I think the bears have realized they’ve run out of steam.”
The Georgetown University graduate added that if bitcoin price can increase gradually and steadily, instead of going through “violent” 5 percent and 10 percent price swings, then it will have a better chance at reaching the $10,000 mark again.
Moro also remarked that crypto investors have realized the “SEC’s [Bitcoin] ETF approval isn’t [likely to come] any time soon.” Per the Genesis Capital CEO, the “market sentiment” regarding crypto ETFs and their approval “is now far muted.” This is actually a “healthier outlook for the next 12 months”, Moro noted.
He added that the bulls will return if bitcoin price manages to sustain its current level. Moro also believes:
“the key level [for bitcoin] is $7,150, to be more exact, but if we can hold that next week, I do think we will see a sentiment turnaround in the market.”
Correlation Between Bitcoin And Emerging Markets
Tom Lee, co-founder of Fundstrat Global Advisors, told CNBC’s “Trading Nation” that bitcoin could end the year “explosively higher.” According to Lee, there’s a relatively unknown correlation between the flagship cryptocurrency and trends in the emerging markets.
The crypto analyst explained that both digital currencies and emerging markets, such as those tracked by the iShares MSCI Emerging Markets Index ETF, have seen declining prices this year after reaching all-time highs toward the end of last year. Lee added that most major hedge funds were not currently not making substantial investments in cryptos or emerging markets.
The Wall Street analyst, however, thinks that if the US Federal Reserve “slows [down] its interest rate policy”, then the USD could begin to trade lower against other fiat currencies. Should this happen, then bitcoin and emerging market prices may increase significantly.