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Recent price gains have crypto market well-positioned in medium term: Panxora CEO

Tony Zerucha

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The recent gains in Bitcoin’s price, and the factors behind them, leave the market in good shape to recover over the medium term, Gavin Smith believes.

Mr. Smith is the CEO of Panxora, a platform allowing anyone to use their cryptocurrency to trade in global markets and generate a return. Mr. Smith shares his thoughts below.

 

“Rather than one main driving force, this rally seems to be driven by a number of small catalysts.

“Firstly, it seems that there is a gradual consensus forming around regulation, which could possibly lead to easier access to the market. This comes at the same time as the withdrawal of smaller miners from mining the major coins, which leaves the process to the larger mining participants. This works in favour of the markets, as the larger participants are much more likely to hold onto their tokens for a more favourable price rather than sell them immediately.

“The final factor to consider, as always, is the unavoidable link between prices and investor sentiment. Since the new year, the crypto industry has been hit by negative headline after negative headline. This has ranged from the Quadriga CX scandal, to regulatory moves from authorities in countries like Venezuela and India against the crypto space. As this has slowed and sentiment has started to recover, so have crypto prices.

“Even so, events like this has had an encouragingly low impact. The negative move in January failed to break below the lows of December, which is a good indicator that the weak holders who wanted to sell have already sold. This bodes well for a market recovery over the medium term.”

Tony Zerucha

Tony Zerucha is an alternative finance journalist with more than seven years experience in the space. The author of more than 1,000 articles, Tony was named LendIt's 2018 Journalist of the Year.

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