The crypto market has been trying to pull itself out of the bearish market sentiment since last week’s dips. As of Sep 13th, Bitcoin is trading at $58,052.92, Ethereum at $2353.82 while Solana and XRP are priced at $133.70 and $0.56, respectively.
The market’s current dubious price swings have taken most investors on a rollercoaster ride, as many are unsure about the reasons attributing to the downward trend of the market.
To set things in motion, finance moguls sat together with The Block’s Editor-In-Chief, Tim Copeland. Copeland was joined by David Lawant of FalconX; Fisher8 Capital Founder, Hedgehog; Rich Rosenblum, co-CEO of GSR and Split Capital CIO, Zaheer Ebtikar. The experts brought to light the various geopolitical and economic shifts that have been affecting the global markets over a 45-minute podcast.
Source: The Crypto Beat, Episode 1
Starting the conversation, Rosenblum pointed to the U.S. presidential elections as one of the top reasons for the current market uncertainty. Donald Trump had been vocal about his support for crypto as part of his policy to end the “inflation nightmare”, which many crypto supporters found favorable until the Sep 10th presidential debate. [Read More on Presidential Debate Aftermath]
Post-debate investors’ confidence seemed to tank for Trump, believes Rosenblum. He also mentioned the role of the new CPI reports, the impending interest rate uncertainty, and “low payroll numbers” [referring to U.S jobs] as agents of market uncertainty – “Economy doing worse than expected”.
Supporting his co-guest, David Lawant who heads Research at FalconX said “Proxy war is not so proxy anymore” hinting at the current geopolitical predicaments related to Israel-Palestine and Ukraine-Russia conflicts.
When asked about the short-term effects of market swings on Bitcoin, Lawant said, “If history is any guide, when Bitcoin has these sharp drops it tends to stay there for three to four weeks but it also tends to outperform significantly in ten to twelve months.” ensuring Bitcoin will sustain all market pressures.
Then again, Fisher8 Capital Founder and CIO Hedgehog, who is an active trader, seemed not so worried as the current support level of Bitcoin has sustained since the last few months and has faith in Bitcoin’s potential for a rebound as he claimed prices of the asset would not go down any time soon.
Split Capital’s Chief Information Officer, Zaheer Ebtikar, raised concerns regarding regulations that might be hindering crypto’s path for innovation when he said. “So long as you don’t get arrested for creating a project in the U.S., that’s just a big milestone compared to where we are today. Fraudulent memecoins aside, anyone who’s trying to build something that might be valuable, the bar is so low that if we can just remove that alone, it is a pretty big catalyst for the space moving forward.”
Questions were also raised regarding the government’s holding Bitcoin as this could mean devaluing of the national currency and gold, which all experts unanimously agreed, might not be the ideal gameplan.