Bitcoin Is “Very Iffy Right Now,” Says New York Stock Exchange Trader

Francisco Memoria
  • Responding to a question regarding the ICE's announcement, a NYSE trader revealed he thinks bitcoin is "very iffy" right now.
  • While he admits it's possible the cryptocurrency may hit $20,000, he "is not so sure."

Alan Valdes, a senior partner at international advisory firm Silverbear Capital, has recently claimed bitcoin, is “very iffy right now,” while commenting on recent developments that saw the world’s biggest stock exchange operator launch a crypto market.

During an interview with Yahoo! Finance Valdes, a New York Stock Exchange (NYSE) trader, expressed his concern over a potential surge for the cryptocurrency after being asked whether the Intercontinental Exchange’s (ICE) move meant Wall Street was getting serious about crypto. He said:

I don’t know. I think it’s a stretch bitcoin is just very iffy right now, at least according to the traders I speak to. They’re really not going to get ‘all-in’ and I think that’s the trouble with bitcoin. How do you protect your bitcoin? These wallets seem very iffy at best.

Alan Valdes

Valdes went on to add that if someone hacks into a bitcoin wallet “it’s like losing cash, you are out.” Per the NYSE trader’s words, the flagship cryptocurrency has a “long way to go” for the “average person to get involved.”

He conceded, however, that in emerging markets bitcoin may become increasingly popular as it’ll likely be a stronger currency than the fiat currency used in these markets.  As for its trading potential on the NYSE, he noted the crypto’s all-time high was close to $20,000 and implied it may be possible to get there again, although he’s “not so sure.”

As CryptoGlobe covered the ICE, owner of the NYSE, recently revealed it’s working on a crypto initiative that’ll see it launch a new company called Bakkt, which will “leverage Microsoft cloud solutions to create an open and regulated, global ecosystem for digital assets.”

Bakkt will reportedly involve giant companies, including Microsoft, Starbucks, and the Boston Consulting Group (BCG). The company is set to make bitcoin a mainstream financial asset, as it offers retail consumers and financial institutions access to an e-commerce system to “buy, sell, store, and spend” cryptocurrencies.

Moreover, Bakkt will take advantage of the ICE’s US futures market to list a physically-settled one-day bitcoin futures product that’s set to launch in November. It is, however, pending regulatory approval.

The ICE’s announcement touted the company will be a “scalable on-ramp for institutional, merchant, and consumer participation” in the cryptocurrency economy. As covered, it was seen by hedge fund manager Brian Kelly as the “biggest news of the year” for the flagship cryptocurrency as it “paves the way for bitcoin ETFs.”

Bitcoin's Hashrate Bounces Back as Price Flirts With $10,000 Mark

Bitcoin’s hashrate is seemingly recovering and moving towards new all-.time highs, after enduring an initial 40% drop after the block reward halving, that saw rewards on the BTC blockchain drop from 12.5 BTC to 6.25 per block.

CryptoCompare data shows that the flagship cryptocurrency’s hashrate hit an all-time high above 130 EH/s ahead of the block reward halving, and endured a 40% drop to 81 EH/s as smaller mining operations started struggling to make a profit.

Bitcoin's price and hashrateSource: CryptoCompare

As the price bitcoin kept on rising after the halving and got close to the $10,000 mark, the cryptocurrency’s hashrate started moving back up to reach a high of 120 EH/s before seemingly dipping again. It’s worth noting that daily hashrate values may periodically rise and drop significantly because of the randomness in blocks mined.

Even if the hashrate is constant, the number of blocks being mined per day varies as the mining machines solve the computational problems to find them. The mining hashrate likely bounced back as a price rise may have helped smaller mining operations become profitable again.

As CryptoGlobe reported, the price of bitcoin broke the $10,000 mark shortly after U.S. President Donald Trump finished a speech on law and order. It then dropped below the psychological $10,000 mark after a flash crash on BitMEX dragged its price all the way down to $8,600, and it has been recovering since.

John Bollinger, creator of the popular technical analysis tool Bollinger Bands, has tweeted out he believes it is time to be “cautious or short” on the price of bitcoin, believing the rise above $10,000 was a head-fake. A head-fake occurs when the price of a security moves in one direction initially, but then reverses its course and moves in the opposite direction.

Featured image via Pixabay.