In an interview for Bloomberg some days ago, Stephen Innes, the head of trading at Oanda, Asia-Pacific region, talked about the fall of Bitcoin and what it implies for the crypto market. Innes compared the condition of cryptomarket with the wild west saying that we need to monitor ourselves the metrics, which indicate unquantified risk.
Innes stated that Bitcoin and other digital currencies have not found the bottom yet.
“Therefore, I don’t think any mature investors are willing to catch this falling knife and that tells me there’s more room to go and as soon as we hit some of these key round figured inflection points at $3,500 and $2,500. I think that’s like the psychological impact that will weigh on more inexperienced traders.”
He included that he isn’t against crypto currencies, yet said that he was dubious regarding where these coins were going and that he is long on the blockchain innovation. As indicated by Innes:
“Considering the momentum we’ve had over the past year, this price action is not positive and despite what soothsayers say, it’s not a good time to go in because we really can’t quantify what we’re really buying at these levels. This is the issue I have with with trying to understand coins at specific inflection points.”
Innes said that there wasn’t only one element responsible for the bitcoin price decline under the $6,000 territory; he said that there were many elements involved causing this fall. The main event he attributed this fall if the Bitcoin Cash fork earlier this month, alongside SEC charges on some cryptocurrency exchanges and ICOs.
Innes also outlined a fact that the absence of contribution by important financial institutions like big banks or even Wall Street is also elements that are contributing more to the fall of bitcoin price and other cryptocurrencies.