Arba’s CEO made his comments during a maintenance – on CNBC’s “Crypto World” – with journalist Tanya Macheel.
Regarding Bitcoin, he said:
“So clearly we are moving sideways in an extended way… Basically you could say we started moving sideways… either February last year or September last year depending on your perspective , but clearly we’ve been in this kind of side channel between – say – $35,000 and plus or minus $60,000, with a bit of a band above and below for about a year now.
“And what is interesting is that iBitcoin had a massive injection of money, which was largely due to two different factors, we had this grayscale arb… So there was a lot of money to win there. And neither is true anymore. And yet, Bitcoin still holds kind of the middle lower end of this band.“
However, he pointed out that he was bullish on both Bitcoin and Ethereum:
“I’m bullish on both for a similar underlying reason, namely network effects. They get the network effects for different reasons, and they’re both in different cycles in my opinion, in terms of getting those network effects…
“Bitcoin causes network effects to become a sort of reserve asset that is trustless, immutable and cannot be stopped, cannot be changed, you know, hard money and so on. These network effects continue to grow. They were discontinued by the ban on mining in China and in fact I think that’s what originally caused the chain to shut down in the 60s. I think it would have stopped in the 80s or 90s, and we would have skidded from there.
“It’s not huge if you’re looking, you know, in terms of long-term exponential growth because I still think we’re getting to $250,000, but it’s the network effects of bitcoin that will become money hard or on the verge of becoming hard money that push for its adoption.
“Ethereum is different. Ethereum’s network effects are based on this idea that it could become the computer of the world. It’s used for stablecoins, it’s used for NFTs, it’s used for DeFi. People watch it for games now. With the upcoming staking I think…rates will probably increase to 10% which is going to show a massive influx of people trying to hold Ethereum which is going to create more of a blockage.
“So the network effects for Ethereum, in the short term, are actually more optimistic to me because of these use cases, right? It’s just starting to play out, and if gas fees and transaction fees go down, which is the promise of proof-of-stake, watch out, because now all barriers to these network effects are removed.
“Now we can have a small effect of selling the news, after the initial type of upgrade rush happens with the upgrade in June or July, whenever that happens meaning the upgrade to proof of stake. So we may be seeing kind of a pullback in the news selling, but yeah, I think you’re talking about, you know, potentially $30,000 to $40,000 of Ethereum. It’s deflationary. The use cases are through the roof. It’s just that all the stars are lining up for Ethereum in my opinion right now.“
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading crypto-assets involves the risk of financial loss.