Our Crypto Masterclass features a well-known thought leader or expert in the crypto space. Today, I focus on Don Guo, CEO of Broctagon Fintech Group, a brokerage solution and liquidity provider. In an email sent to Inside Crypto writer Rebecca Campbell, Guo talks about how crypto liquidity appears to be static.
"Amid an onslaught of global economic downturn events, Bitcoin appears to be holding its own."
Guo said that while the pandemic has affected all corners of traditional markets, Bitcoin is showing resilience. With most cryptocurrencies appearing to be strengthening, Guo said that it's unsurprising that industry experts have been projecting positive growth for the latter part of 2020. He points out that some leaders have predicted levels of $20,000 for Bitcoin again, whereas others have gone higher and think it's possible for Bitcoin to reach $150,000. While Guo said that such heights right now are unheard of, he's of the view that the market is in a better place than it was during the 2017 bull run. Since then, he said, the market has matured with increased institutional investment, higher volumes for derivatives, and more sophisticated trading mechanisms.
Bitcoin volatility is at its lowest since Black Thursday, which saw the market prices drop significantly March 12. However, since then, Guo said, crypto liquidity appears to be static, which is largely due to apprehensive investor sentiments. According to Guo, many investors are holding on to their Bitcoin stores in anticipation of an upward price movement. This, he added, is because savvy traders soon expect market volumes to pick up again as investor demands increase.
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