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00:00What do you see in terms of the possibility of a move down to twenty thousand I guess it's not entirely outside the realm of possibility considering the volatility we've seen with this asset. Oh absolutely. I think I look overtime. We have seen that Bitcoin is capable of significant draw downs as well as significant upside tonight. You know that's what a lot of people love it for this particularly this volatility. But you know I think we starting to see a floor which is not really what we have seen in previous cycles. In previous cycles what we saw was when you see the run up it goes parabolic. And when it comes down it comes down even more sharply. This time around it feels like it's you know a little bit more control on the way down. Now we'll see whether that remains the case in the coming weeks. Is it right to look at some of the technical support that we've seen with other classes with Bitcoin or is it is bitcoin just in a class of its own. I think to be honest with you I think technicals is absolutely the right way to look at Bitcoin because bitcoin you know don't forget a trades almost exclusively on animal spirits. And that is what technicals tried to measure. It tries to measure you know when we see where when when there is momentum in its stock when people are getting excited about it and this is what you try and measure. So over time I think I've seen some of the best predictors of crypto currencies have been technical analysts. Suddenly the fundamentals are a lot harder to call. That's the technical side. I mean Eddie what about on the correlation side. Your colleague on the NY blog Mark Cranfield put out an interesting post overnight. The correlation between Bitcoin and the Bloomberg Dollar Spot Index essentially saying you have to see the dollar recover in order for Bitcoin to gain any kind of traction here. If we get the weaker dollar the story that everybody's calling for. What does that mean for bitcoin. Well I think Bitcoin has become much more of a risk on play of late. I think that's a good thing for Bitcoin right. Because as you see more institutional money flowing into it it will start to correlate with other assets which had never had been in the past. So look I think if we see you know pick stocks selling off I think that would be really damaging for Bitcoin. I think at this point Bitcoin is trading a little bit like it takes stocks but one with you know significantly higher volatility. What do you see in the other cryptos. You know a lot of people get down on Bitcoin because of transaction time and costs. And it's lack of ability is that for example ether has our other coins rallying while Bitcoin falls or does the I guess not. A rising sea raises all ships but a falling tide brings everyone down. Right. Right. If you pull the plug out of the bathtub everything sinks down right now. I get I get it. I agree with you and Rick. Look absolutely. That is the case. What we're seeing right now is the widest space is falling alongside bitcoin in theory and slightly outperforming. Year to date. But I think you know you need bitcoin to do well to to to to bang the drum for the crypto currency space and bring new investors into this space. And if you don't see that we've sold we saw that in 2017 and we saw it in previous cycles. You do see the other crypto currencies come back down. If Bitcoin comes down.

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Bitcoin Analysts Eye Potential Drop to $20,000

Bitcoin’s bad week could be a sign of trouble ahead as analysts see the potential for the cryptocurrency to fall to $20,000 on further weakness. Bloomberg MLive’s Eddie van der Walt explains. (Source: Bloomberg)

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