eToro Crypto Trading CEO: Market Correction Is Healthy, Bitcoin Demand Still High

While there aren't many people in the investment world that would actively show excitement, or vocally profess the advantages of it, there are those that certainly see the upsides to it.

One of those individuals being Yoni Assia, the CEO of eToro, the multiple asset, digital trading platform. Assia has stated recently that while the market may be going through a downward trend, the demand for Bitcoin hasn't diminished, and that this bearish stint may be a good thing.

In the last few months of 2018, Bitcoin has encountered a number of major corrections to its value, the latest being in August, making the third correction it's had. Overall, its value has slipped from $8,500 to trade at roughly $5,850, falling through its previously strong support level of $6,500 and $6,000 respectively.

While the Market Shrinks, Demand for Bitcoin Certainly Hasn't

Within his daily role as CEO of eToro, Assia oversees one of the largest digital trading platforms in action within the global financial sector, hosting over 8 million users.

In conversation, Assia mentioned that he believes the market corrections, while unfortunate for investors, were ultimately necessary for the continued stability and future growth of Bitcoin. These corrections will inevitably allow the market to mature, giving it a firm foundation from which to rally in strength.

Assia went on to emphasize that while the market corrections have, overall, seen Bitcoin stumble from its high watermark value of $20,000 to where it is now, that while the market is bearish, demand for Bitcoin hasn't shown any signs of slowing.

This news is especially remarkable, considering that since the fall from the $20,000 valuation, an effective correction of 78%, it remains an emerging and dominant asset class within the platform and the world.

“In our view, the recent market correction is good for the long-term development of the market,” Assia continues, arguing that the market still has the potential to develop and grow exponentially.

“Cryptoassets are still a relatively nascent market; emerging technologies like this often see swings in their value in the early days. Market adjustments like those we have experienced recently help to stabilize prices, and make the industry more robust. Despite these adjustments, however, we have not seen a significant dip in demand for digital assets.”

Demand for Bitcoin is certainly not slowing, and Assia was quick to follow up with the fact that, according to research pulled from eToro and its users trading habits, that not only is the demand for Bitcoin continuing to go strong, but that future demand will only grow.

“As the market matures, more investors are expanding their portfolios to include cryptos, while new investors are opening portfolios to trade crypto assets. We do not expect this demand to slow down any time soon, as more people recognize the potential of crypto assets.”

The Market Structure's Support, Thanks to Major Improvements

The recent downward trend in the cryptocurrency world wasn't well received by investors, as the likes of Bitcoin, Ethereum, Litecoin and Ripple, along with many other altcoins sustained significant losses. While investors were taken by a distinct amount of surprise by the downturn, those more experienced with external factors such as the SEC's delays regarding the Bitcoin ETF could see it coming.

But what would have caught the average buyer by surprise was the fact that it was such a steep downturn for a time when a lot of positive news was coming out of the cryptocurrency world.

In August specifically, we had developments like the announcement by the New York Stock Exchange (NYSE), Microsoft and Starbucks that they'll be establishing an initiative referred to as BAKKT, with the ultimate aim of improving the usability of cryptocurrencies on a domestic level.

Meanwhile, both the Japanese and South Korean Governments announced their intentions to introduce firm regulatory policies which would see cryptocurrencies treated in the same manner as financial institutions, including an expansion of anti-terror and money laundering policies.

By contrast, the People's Republic of China has pivoted away [somewhat] from their prior aggression towards cryptocurrencies. In particular, this has taken the form of spending over $3 billion to finance blockchain startups, including a cementing a vast number of patents on blockchain concepts.

While all of this news should, in theory, culminate in an almost ‘super-bull' trend for the cryptocurrency market, the opposite has been the case. With the market showing little in the way of upwards momentum, falling into a continued downward trend for the time being.

One of the reported pieces of news which may be to blame for a downward trend is the increased level of activity from Over the Counter (OTC) crypto transactions, which have now become so influential, that they outnumber the number of transactions which take place in coin exchanges.

With the OTC market now purportedly being three times larger than coin exchange activity, this could explain why the market is trending downward.

But while the market is in the red at the moment, Asia takes on a more optimistic, long-term view regarding crypto's future performance. He mentions the fact that once countries such as India prove able to cement their stances on cryptocurrency usage, and then the market will proceed in the long-awaited bullish trend that investors want to see.

“The potential of blockchain technology is becoming increasingly clear to governments and financial institutions worldwide, as we have seen in recent attempts to incorporate this technology into their existing structures.”

“We also know that institutional investors are waiting for regulatory clarity to move from the side-lines to the centre of the playing field. As we see developments move forward in these areas, we expect the price of Bitcoin and other cryptoassets to climb higher, though we may see some volatility as investors respond to short-term market news.”

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide