Keep calm and carry on, eToro says, as crypto market nosedives

Cryptocurrencies prices might be taking a hit right now, but in no way is this the end for Bitcoin et al.

“The bear in crypto markets is showing persistence. What we’re seeing now are the after-effects of the unprecedented rise of Bitcoin and other cryptoassets seen in 2017. This year is simply a retracement of that,” says Mati Greenspan, Analyst at multi-asset investment platform, eToro.

The same is happening in broader markets as well where tech stocks, for example, are following a similar pattern, he points out. As with all markets, if prices reach levels that are higher than can be justified they need to pull back. These cycles can sometimes be accentuated in the crypto market due to the riskier nature of this nascent industry.

“In the same way previous cycles have not signalled the end for broader markets, these price movements don’t signal the end for cryptoassets. We’re still very much at the beginning of the crypto journey. At this stage, volatility is to be expected,” Greenspan concludes.

Revolution road

Earlier this month, eToro confirmed the roll-out of its crypto wallet.

“We believe that crypto and the blockchain technology that underpins it will have a huge impact on global finance. Blockchain has the potential to revolutionise finance and we believe that we will see the greatest transfer of wealth ever onto the blockchain,” said Yoni Assia, CEO of eToro.

“We believe that in the future all assets will be tokenised and that crypto is just the first step on this journey. Just as eToro has opened up traditional markets for investors, we want to do the same in a tokenised world. Our wallet is a key part of this.”