eToro Crypto Expert Mati Greenspan Shares Fascinating Bitcoin Bull Run Insights

What’s Driving the Bitcoin Bull Run? eToro Senior Analyst Mati Greenspan Gives an Alarming Analysis

Mati Greenspan, eToro senior analyst has revealed in his analysis that the bitcoin bull run is being spear headed by Koreans and Japanese traders. According to his analysis, there has been a significant increase in bitcoin volume in that particular region in line with the increase in price.

So, what is Really Happening in East Asia?

Bitcoin price has spiked up rapidly in the last two months crossing the $8,000 mark, heading to $9,000. The rise in price has been consistent especially in the last week, rising from a low of $6,380 to more than $8,000.

Bitcoin investors and enthusiasts are particularly excited and are hoping that this be the much-anticipated bull run. Several factors and issues including Blackrock’s potential interest into the digital currency market as well positive news from the regulatory institutions seems to be favoring the bull run.

The surge above $8,000 was definitely led by East Asia. Take a look at bitcoin volumes in Japanese Yen and Korean Won at the time of the surge (13:30 – 15:00 on the chart).

In contrast, USD volumes had only a small spike and USDT (tether) remained constant through the movement. pic.twitter.com/fHdD8gRTTL

— Mati Greenspan (@MatiGreenspan) July 25, 2018

There is, however, according to Greenspan a different theory all together that can also be attributed to this spike in price. Greenspan has gone ahead to share a series of graphs that explain why Koreans and Japanese are leading the bitcoin price surge.

According to his graphs, the bitcoin surge above $8,000 has been fueled by the increase in bitcoin trading volumes in East Asia. On the chart, Japanese Yen and Korean Won transactions on bitcoin correspond to the surge.

Looking at the other charts showing USD volumes, the spike is quite insignificant since the trading volumes are low. USDT (tether) remains constant throughout the trading period.

A clear testament to the improved liquidity of this market. :)

— Mati Greenspan (@MatiGreenspan) July 25, 2018

Greenspan also attributes the spike to improved liquidity of the crypto market. The spread between different brokers remains closely tight despite the surge, showing that bitcoin liquidity has really improved over time. Just a year ago, there would have been even 20% differences between different exchanges. As of the moment, all the exchanges have more or less the same bitcoin price unlike last year when you’d find differences of hundred of dollars.

Here is Why Japanese Bitcoin Trading Volume is Increasing

According to Greenspan’s analysis, Japanese traders are moving to bitcoins following the announcement by the Central Bank of Japan (BOJ) of a plan to devalue the Japanese Yen. The announcement led to the highest increase in bond yields in Japan over a two-year period.

According to Greenspan tweet, the Japanese are gearing up to save their money by converting their liquid cash to more valuable assets like bitcoin following a plan to tweak their monetary policy.

Japanese investors flock to BTC as the the GVT devalues the YEN. https://t.co/SflIhfVnNa

— Ran NeuNer (@cryptomanran) July 25, 2018

Greenspan, however, does not have conclusive reports on what the BOJ is going to do. There are speculations that the bank might raise its interest rates. Considering that Japan has the lowest rates in the market, the rates will probably not go above 1%. To add on to this, Abe & Kuroda have strict “weak Yen” policy.

This means therefore, that even if the rates increase or influence bond purchases, they will still ensure that they stick to their “weak Yen” policy.

It is, thus, not very clear if the bull run will continue, though bitcoin remains on the positive or the green side of the graph and is still above $8,000.