The largest blockchain event ANON Summit 2020 went live online on May 19‒20. As always, the summit brought together the blockchain crowd from all over the globe and focused on digital economy and things crypto. To spite the pandemic, ANON fully recreated the in-person conference experience in a web-based digital space.
Anatoliy Knyazev, Executive Director at EXANTE, joined the ‘Trading on Market Volatility’ panel. His co-panelists were Tone Vays, Content Creator, Derivatives Trader & Consultant, and Mati Greenspan, Founder of Quantum Economics. VP of Portfolio Management at Exponential Leah Wald moderated the discussion.
Here are all the key points from the summit:
1. Bitcoin ETF
Tone Vays believes that the crypto market will finally see ETH. However, it might not happen as fast as everyone would like it to be. Vays does not expect any bitcoin-related ETH to come out by the end of this year, but says the US Securities and Exchange Commission (SEC) will finally have to give a permission for a company to launch product.
"And it is not fair to retail investors that do not have the real opportunity of a liquid legitimate ETF," Vays added.
2. Bitcoin Crash Below $1000
Exante Co-founder Anatoliy Knyazev says there is almost no confidence bitcoin (EXANTE: Bitcoin) might fall down to the $1000 mark. Contrariwise, bitcoin still has all chances to skyrocket up to $50,000.
"We all have seen December 2017 and $50,000 from $10,000 is not unreasonable. It is normal business for bitcoin," Knyazev said.
He also pointed out that during market fluctuations, investors do not rush to buy crypto. Crypto is back in the limelight once the market goes on the rise.
When investors have satisfied their appetite for stocks and bonds, they will have enough confidence to explore the crypto markets, Knyazev explained.
Tone Vays agrees that there is "extremely small" probability that bitcoin might fall to $1000 and stay there for a long time. Unless there is a bug that may destroy the code I don't see bitcoin going that low, Vays added.
3. Defining ‘fundamental’
Speaking on whether the technical or fundamental analysis is possible with crypto, Knyazev said that it is quite a hard task to define ‘fundamental’ for a blockchain project like bitcoin.
However, the 24/7 available crypto market allows to analyze the market's condition in real-time with various indicators and analytical platforms.
"You have more access to stuff like wallet creations, transaction volumes etc, which is on-chain compared to traditional companies... Trader at home can and should utilize it," Knyazev said.
4. Top investment projects
Investors will become increasingly interested in options. Their volume is quite low and the market is illiquid, yet they will surely improve.
"After what happened with BitMEX [The massive market crash on March 12-13] all the institutional guys I have talked to are really concerned with the credit risk of the exchanges," Knyazev highlighted.
As a result, credit risk of cryptocurrency exchanges could play a pivotal role for coming institutionals.
5. Crypto leverage
Any broker or exchange that is offering a 100x leverage in crypto is a flat-out scam, Mati Greenspan says. The Founder of Quantum Economics claims it is not possible to make money with such a high type of leverage.
"You just end up liquidating account time after time," Greenspan says.
The bitcoin halving has not changed Greenspan's investment strategy as he is still primarily focused on BTC (approximately 80% of the portfolio assets).
"I went in a 100% into bitcoin into the halving just because there was a lot of excitement... Still 80% is a lot for me..." Greenspan added.