Most of the up and down movements of bitcoin at the moment are fake, according to Nicholas Merten from DataDash. There are no big active traders in the crypto market, and the few traders who are trading are medium-sized investors. This is the declaration posted by Merten in a video recorded after Tokenonomics 2.0 in Bangkok, Thailand.
“We do not have a relevant retail share of this market. The volumes in the offer books are quite low and this opens up an opportunity for price manipulation in the spot market and the exchanges such as Coinbase, Gdax, Gemini, and others”.
He explains that since the bear market began, traders leveraged in exchanges have an incentive to trade on the short side. For example, at the peak of the bull market, those considered to be large whales had two options. They could have sold their bitcoins and generated a relevant low in the market. Or they could sell a little on the spot market and maintain a leveraged position on Bitmex against those who were buying (long). Likewise, in the reverse direction, they can make even more money. That is to say, that is what the current movement would be based on.
Thus, Merten predicts that the price of the cryptocurrencies can still take a dip up to US$ 3,000. If not, it will keep the average price of the last 200 weeks, which is not climbing much. “We are in the process of staying in the background for the time being,” he says.
The fundamentals of cryptocurrencies
Merten noted that many products introduced during Tokenomics 2.0 surprised him. For him, the foundations of cryptocurrencies are in the creation of applications that allow their adoption in mass. So with new users, the liquidity of the crypto market can increase and create the necessary scenario for a bull market.
In a recent chat with the CEO of Transfero Swiss AG, Thiago César, Nicholas also talked about other adoption scenarios. For countries where fiat money suffers uncontrolled inflation, citizens can resort to cryptocurrencies. Thus, with greater usability and latent demand in many countries, mass adoption seems closer. Therefore, it is important to focus on the fundamentals of cryptocurrencies so that there is a solid basis for much more growth.