The rejection of the Winklevoss Bitcoin ETF has not tarnished market sentiment, according to Wall Street “crypto-king” Bart Smith. Smith delivered this analysis in an interview with CNBC, explaining that Bitcoin still needs to reach “higher highs” and “higher lows” to stay bullish.
Wall Street’s #crypto king Bart Smith sees these as the next key level for #bitcoin as it tumbles below $8k
Smith, head of Digital Assets, Susquehanna International Group, said the Bitcoin market is currently bullish. A negative outbreak can only happen if prices break $ 6,800:
The technicians I spoke to are worried about $ 6,800, which is the level at which I think if it were broken, it would be negative.
He said that the rejection of the ETF proposal did not have a drastic impact on prices. After BTC traded at $ 6,800 before the last rally, Bitcoin’s price in the ETF hype rose to over $ 8,400.
Smith states that it is a positive signal that the Bitcoin price did not experience a massive sell-off immediately following the Winklevoss Bitcoin ETF rejection report and did not sell all the profits generated prior to the ETF decision. Should the current level of around $ 7,500 hold, then Smith has a good chance that the BTC rate will rise in the long term.
Smith said that if a large insurance company or an institution like CalPERS decides to invest in Bitcoin, it could trigger a new wave of potential investors. He said:
Every institution looks at the dance floor and nobody dances and nobody wants to be the first person out there.
Smith went on to say that institutions still have to deal with the risk profile of Bitcoin. Although it is a very volatile asset, it could actually use institutions to reduce the risk of their overall portfolio.
Bitcoin basically has no correlation to stocks, and with one percent Bitcoin and 99 percent stocks, the risk profile is lower. Square is half as volatile as Bitcoin. So, if someone owns $ 100 from Square and have $ 50 from Bitcoin, he/she basically have the same risk.
He thinks that as soon as institutions start thinking about Bitcoin in this way, and if large institutions take even small positions in Bitcoin, it will increase liquidity and trigger a bull cycle.
He concluded with a statement that should also be considered as a criticism of investors who think at short notice:
Everyone wants it fast and now … but that’s a long game.
While Smith proclaims a bullish market, the Bitcoin price is currently on the decline and is currently at $ 7,336, down 4.25 over the last 24 hours. The MACD is showing a bearish trend and the 100 EMA line is showing a downtrend which is why the BTC price is currently facing an increase in the seller’s pressure.