Bitcoin can get a boost if one key level holder, according to trader Jim Iuorio.
The digital currency, which is up nearly 200% this year, has seen massive price fluctuations this week and hits a 17 month high Wednesday before crash on Thursday afternoon. The $ 3,000 case happened around the time Coinbase, a crypto curve trading platform, including bitcoin, saw a brief interruption.
But Iuorio, CEO of TJM Institutional Services and a long-term futures and option trader, says there is still hope for bitcoin despite its volatile tendencies.
"I said yesterday that as long as it was over $ 1
Still, Recognized Iuorio that some investors can actually be deterred by the chaotic act of bitcoin.
"The size and speed of the rally was unsustainable, and the size and speed of the correction was even worse," he said. "But what just does it shakes out the weak hands and reminds people that there is danger. This is I hate to say a healthy movement in something that is gone as far as it is …. This is what has I think it can easily accumulate above the $ 10,000 level and resume what it did before. "
And given that the latest increase in bitcoin prices has gone hand in hand with the rise in the price of gold, what bitcoin Having done recently becomes something of a "proxy for fiat currencies," Iuorio said.
"It began to rally hard when the Fed began to swing against dovishness," he said. "So that means the three central banks are all pretty tough. I think that's why people go into bitcoin."
Nevertheless, "it's certainly the wild west out there," says Iuorio, quoting the dramatic race of the digital coin higher in 2019.
That means investors should be cautious, but not so cautious that they see a platform interruption as a reason to sell bitcoin, says Scott Nations, president of the finance company NationsShares.
"The CME futures, I think, is the place to do this because, as Coinbase shows, you can't trust any of the other venues. Jim and I disagree on this," he said in the same "Futures Now" interview, adds that bitcoins latest sales volume came because its price "went way beyond value".
"I think that if a place is shut down and you are unable to access assets in a single place, it should not affect the value of what you trade at 20%," the size of bitcoin Thursday afternoon drop, nations said. "For example, if I want to trade IBM on the New York Stock Exchange, the New York Stock Exchange shouldn't beat IBM's value."
Anyway, bitcoin is probably not ready for primetime if you ask Iuorio.
"Everything that comes into it validates this a bit more," the trader said. "If you talked to me two days ago about," This is ready to be a live live exchange, a real live currency, an exchange of money, "I would have said, maybe it will be closer. I see how it has moved over the last 24 hours, it's not clear yet, but everything that can be added to it, maybe one day, will grow into it. "
Bitcoin prices were about 16% lower after Thursday Bitcoin futures were down almost 23%.