During his most recent YouTube interview, the highly revered crypto expert highlighted on the flagship crypto strong fundamentals noting many indicators point toward price positivity for Bitcoin.
“There’s an immense amount of activity on the network between investors compared to the valuation,” Woo said, referring to data from Bitcoin’s NVT ratio, which shows blockchain network activity in relation to market capitalization.
“We haven’t seen any kind of mania,” Woo continued. “We dumped down from a level which was highly organic — no speculative premium,” he said. “The 2017 top, for example, we were
I think 3.8% higher than the organic evaluation.”
Consequently, the U.S. Treasury Secretary Lawrence Summers in a recent interview with Bloomberg Television gave his bias on what crypto assets might likely be in future, saying in spite of its price volatility it could be more of digital gold,” even if their importance in the world global economy diminishes
“Gold has been a primary asset of that kind for a long time,” said Summers, “Crypto has a chance of becoming an agreed form that people who are looking for safety hold wealth in. My guess is that crypto is here to stay, and probably here to stay as a kind of digital gold.”
Current data revealed most of the recent selling was done by investors that bought Bitcoin assets in the last few months, suggesting long term investors are still bullish on digital assets.
Still, a significant number of crypto experts have revealed this might not be a good time to invest in the crypto market, considering the high price swings that have battered valuations at the moment, and investors should be ready to lose all their funds.
Adding credence to this is the European Central Bank Vice President Luis de Guindos who recently warned that Cryptocurrencies shouldn’t be viewed as a “real investment” because their underlying value is hard to discern.
Though some market pundits think it may not be a bad idea to buy the dip, given Thursday’s sudden rebound.
Lark Davis spoke on the present amount of stable coins ever in crypto history on Crypto exchanges, meaning investors were ready to pump the market and gobble the dip.
That being said, investors need to be aware that the crypto market is not a suitable safe long-term investment option, given the high volatility and risk factor.
Though investors having a high appetite for risk and a significant amount of disposable income to play with, it could be right up your alley, taking to account its returns are usually much higher than traditional financial investments but investors should also be ready for frequent bouts of extremely high price swings.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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