One of the regular financial analysts on CNBC’s “Future’s Now” segment has argued that the sharp drop in the Bitcoin (BTC) price over the last 24 hours is healthy for the market. Jim Iuorio is hoping to see prices bounce above the $10,000 mark.
If Bitcoin is able to find support above the psychologically-relevant price point, Iuorio has faith that the price will continue on the generally upwards trajectory of the last few months.Can Bitcoin Hold on to $10,000?
Managing director of TJM Institutional Services and experienced futures and options trader Jim Iuorio appeared on earlier today to discuss the recent extreme moves in Bitcoin prices. Alongside fellow regular analyst Scott Nations, Iuorio argues that the drop is not only to be expected but is healthy for the market:
“This is what has to happen. I think it could easily gather itself above the $10,000 level and resume what it was doing before.”For Iuorio, dips like the one that has seen Bitcoin prices plunge to below $11,000 from a high of almost $14,000 just yesterday are not only to be expected but are to be welcomed since they “shake out the weak hands”.
Driving the recent rally for the CNBC regular is the Federal Reserve’s latest programme of quantitative easing. He believes that people are hedging against the controversial policy by investing in alternative assets such as Bitcoin.
Perhaps because of Iuorio’s optimism for a greater-than-$10,000-bounce and how beneficial such a move will be in the bigger picture, the CNBC anchor felt compelled to remind viewers to be “quite cautious” when considering taking up a position in the market.“Quite cautious? It’s absolutely the Wild West out there!… Where there’s huge volatility there’s opportunity as well.”
Finally, Iuorio speculated on the future of Bitcoin. He opined that, based on its volatility, the financial and technological innovation is not ready for mainstream use yet and that this had come as something as a surprise to him. The prolonged periods of stability experienced at the apparent end of the last bull market had signalled a more stable asset to the experienced trader and investor.
The return of the wild 20 percent or more swings in just 24 hours confirmed for Iuorio that this is not the case. However, he does admit that with each big infrastructural development – the much-anticipated Bakkt launch, as well as the of Fidelity and TD Ameritrade entering the market with products – the industry gets more robust and therefore is increasingly unlikely to be going anywhere anytime soon:“Everything that comes into [the industry] validates [Bitcoin] a little bit more.”
Related Reading: Bitcoin Price Rising Alongside Negative-Yielding Government Debt
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