Crypto.com’s CEO believes Bitcoin price will be in the December 2020 cycle phase.
The price of Bitcoin is up more than 150% since this time a year ago, and Crypto.com’s CEO believes that inflows into new spot exchange-traded funds have largely driven the cryptocurrency’s rise. He also believes that we are probably in the December 2020 or January 2021 phase of the last cycle and that the current price correction is “healthy.”
Kris Marzsalek shared his belief that Bitcoin’s strength was “primarily driven by inflows in Bitcoin ETFs” in an interview with CNBC’s Squawk Box.
“This is a very successful product,” he said. “There is a problem with supply and this must be reflected in the price.”
In fact, the success of the new spot Bitcoin ETF product is hardly debatable among experts inside and outside the cryptocurrency industry. On March 12 alone, net spot Bitcoin ETF inflows exceeded $1 billion.
Bitcoin’s current price adjustment is ‘normal’
When asked about the current correction, which has seen the price of Bitcoin fall from an all-time high of $73,000 to around $65,000, Marzsalek said it was “a healthy move to remove some of the leverage that has built up in the system.”
“What we want to avoid is a sudden, very aggressive surge,” Crypto.com’s CEO explained. “We want to see a steady flow of inflows into the industry, Bitcoin and other coins. This will allow us to operate for about 12 to 18 months.”
Bitcoin price is currently above $66,000, according to price data from The Block.
‘We’ll probably be there in December 2020 or January 2021.’
When asked where retail participants sit in the equation of Bitcoin’s current market dynamics, Marzsalek said he believes we still have a long way to go in this cycle. “We have a huge amount of proprietary data, so we can look back at what happened in the 2021 cycle from a retail perspective and compare it to what’s happening now,” he explained.
“If you look at the data and intent as signals on the retail side, it’s probably in December 2020 or January 2021.”
Marzsalek said the indicators suggest that what is currently happening to the Bitcoin price is primarily driven by the options market, explaining that “this level of volatility is actually pretty low compared to what we have seen in previous cycles.”
“I think we’re going to see a steady upward trend and that’s what we want,” he said, adding, “This is an asset we want to hold for decades.”
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