CNBC's 'Crypto Trader' Bearish on Bitcoin, Very Bullish on Cardano and NEO

Siamak Masnavi

On Thursdsay (28 June 2018), Ran Neu-Ner, the founder of Onchain Capital, the host of CNBC Africa's "Crypto Trader", and one of the most influential people in the blockchain space, explained on CNBC's "Fast Money" (hosted by Melissa Lee) why he believes Bitcoin (BTC) will go even lower within the next couple of weeks and why he remains bullish on the Cardano (ADA) and NEO (NEO) projects.

Neu-Ner, who had predicted on Fast Money on June 11th (when Bitcoin was around $6,860) Bitcoin's drop to $5,900, was appearing on the show once again, this time with Bitcoin sitting at $5,915. He was asked what was next for Bitcoin. This was his reply:

Look, unfortunately, the same model that told us we are going to $5,900 is telling us there's more blood to come. It's calling a 62% chance of a bear market and a bear market means we are going to test $5,350 as the next point... There's about a 16% chance of a bull market, but to confirm the bull market, we then need to test $7,400 with high volume. So, right now, my money is on the market continuing to go down and going down to $5,350... and time horizon there is the next two weeks.

Lee then asked Neu-Ner how he thinks Bitcoin's mining cost comes into play. He answered:

It's a huge factor, but what's going to happen is when the miners find it's not viable for them to mine, what they are going to do is switch off their machines, and there's going to be fewer machines in the ecosystem, and the machines that are left are going to continue to mine. So, we are at those levels. We received some notifications from some of the miners that they have already switched off their machines.

Hedge fund manager Brian Kelly then said to Neu-Ner that he didn't believe that going below the production cost would have any impact on price since we were still going to get 12.5 BTC every 10 minutes, i.e. that the supply of Bitcoin would remain the same whether we had 100 miners or 2 miners. Neu-Ner said that the main impact would be that the miners who could not afford to continue mining would switch off their machines, which would mean that the "mining bounty" would be shared between fewer miners, thereby making mining viable again for those remaining miners. He also said that this would naturally lead to much less investment in new mining infrastructure.

Another hedge fund manager, Tim Seymour, then asked what was the best play at the moment. Neu-Ner said that it all depended on your time horizon: if you were a strong believer in blockchain technology and an investor with a long term outlook, now was a "great time" to be buying Bitcoin, but if you were a short-term trader, then based on his prediction of $5,350 within the next two weeks, you could take a short position.

Finally, Neu-Ner was asked what were the coins he was most bullish on at the moment. He said that he felt that infrastructure plays (i.e. platforms on which you could build the next generation of DApps) seemed to be "really undervalued", and his favorite two projects in this area were NEO (what he called the "Chinese Ethereum") and Cardano.

According to CryptoCompare, at press time, NEO is trading at $27.10 and at $0.1150.

 

You can watch the full video of this segment of Fast Money on the CNBC website.

Featured Image Credit: "Bitcoin Crypto Coin Stock Photo" by "Crypto360" via Flickr; licensed under "CC BY 2.0"

Crypto Market Crash Led to Highest Daily Volumes Ever, Cryptocompare Finds

Last month’s cryptocurrency market crash on March 12- 13 saw daily trading volumes hit a new all-time high as $75.9 billion were traded across cryptoasset exchanges in a single day.

According to CryptoCompare’s March 2020 Exchange Review, most of the trading volume came from lower-tier cryptocurrency exchanges, as these traded a total of $54.3 billion on March 13. Top-tier crypto exchanges, on the other hand, traded a total of $21.6 billion that day, equivalent to 28.5% of the total trading volume.

The report further revealed spot volumes surged in the first quarter of this year, increasing month-over-month since December 2019.

market volumes in MarchSource: CryptoCompare

The trading volume of the top-tier exchanges, it’s worth noting, didn’t hit a new all-time high, but came close to the record-breaking volumes they saw in July 2019 and December 2017, when the price of bitcoin was at an all-time high near $20,000.

As CryptoGlobe reported, CryptoCompare’s January 2020 Exchange Review showed that top-tier cryptocurrency exchanges saw their trading volume grow by 61.2% at the beginning of the year, while the trading volume of lower-tier exchanges then grew by 46.4%. At the time, top-tier exchanges were gaining market share and climbed to one-third of the global trading volume.

While exchanges using the trans-fee mining model have in the past recorded sky-high trading volumes, these represented less than 20% of the volume last month. Exchanges using the traditional taker fees represented 80.4% of the total trading volume.

Despite hitting a new record in daily trading volumes, exchanges saw their total traded volume drop in March. Fee-charging exchanges’ volumes dropped 2% to a total of $924 billion, while TFM exchanges’ volumes dropped 14% to $222 billion.

Top Exchanges During Crypto Market Crash

Binance was the largest top-tier cryptocurrency exchange by volume in March, trading a total of $63.6 billion, up 19.2% compared to February. It was followed by OKEx, which traded $47.7 billion, down 8.2%.

market crash volumes.jpgSource: CryptoCompare

When Bitcoin’s price started plummeting on March 12, Bitfinex represented the majority of top-tier exchanges’ trading volumes across its BTC/USDT and BTC/USDT pairs. It was followed by Coinbase, OKEx, and Bitstamp.

Within the first hour of the crash, CryptoCompare’s report adds, Bitfinex generated the most volume.

 Photo by David McBee from Pexels.