 Hi, I'm Giovanni and today we are with senior market analyst Mati Grinspan from eToro. Hi Mati, how are you doing today? Hey, how's it going? So Mati, we have seen in the last few hours that most cryptocurrencies posted moderate losses. Do you think it's a correction or we should be worrying about it? Not at all. I think that that's actually kind of zoomed in a little bit too much. You got to zoom out a little bit because if you'll notice the trend overall, you know, this is the declines that you're talking about, right? So that's not, that's not too much. What we're seeing now actually is kind of an upward consolidation pattern. And in the video last week, we discussed the possibility of a Bart Simpson pattern emerging. And a lot of the time what happens in the crypto space is you get a surge upward and then this kind of consolidation, which kind of looks like Bart Simpson's haircut and then a surge down. On Friday, we actually saw a continuation upwards. So now what we're looking at is more of an upward trajectory. You see now instead of looking like Bart Simpson's haircut, because we had that continuation in the middle of April and then another continuation last Friday, now it looks like we're actually having upward trajectory, which is quite a bullish pattern. And even if we come down, you know, to the bottom line here, it doesn't break that pattern. So certainly past performance is not an indication of future results, not ever, not never. But as far as technical analysis is concerned, this is a bullish sign. Thanks Matty. And what do you think about altcoins? Because as far as I know, like they are underperforming Bitcoin. Do you think it's like a trend which will continue? And what do you think is the cause of it? So yeah, we're just coming off the back of alt season. On April 2nd, that surge put the focus back on to Bitcoin. And we can see that Bitcoin is actually kind of the in the driver's seat once again. A lot of the time what happens is because most of the volumes in crypto these days are on exchanges that are crypto to crypto rather than fiat to crypto. And we've seen that trend kind of growing. So as that happens, certainly we know that there's a correlation where all of the cryptos tend to move in the same direction. But of that, you'll have times where Bitcoin is the leader and that, you know, and then there's times where Bitcoin is the lager. In this case, we can see that Bitcoin is the clear leader at the moment. Okay, so now let's talk a little bit about the latest news. Bitfinex is going to raise $1 billion for its IEO. But a lot of people are quite skeptical about it because of the latest scandal surrounding the firm. So a lot of people are saying that this is going to be a bailout and not an IEO. What do you think? They are going to really manage to raise such a big amount of money despite the crisis. I'm quite skeptical that they'll be able to hit that target at the moment. If the founders were trying to raise that kind of money for an actual project, they might be better off just doing it under a different name. I'm very skeptical of the way that they've announced this. As far as I saw, the announcement was made on some sort of a WeChat group, not the traditional kind of press release that you'd want to see when somebody's trying to raise that type of capital. The amount in question is also very suspect because they were reportedly missing $850 million. So if you say, okay, a billion, that's like $850 million plus a little bit of spare change, you know, I think it's going to be very difficult for them to raise that kind of money with the sentiment being as it is at the moment. At the moment, Bitfinex and Tether are in so much trouble that you can see that there's a premium that's opened up across the exchanges. So this site, CryptoWatch, allows you to track the price of Bitcoin across different exchanges. And Bitfinex, you can see is right now trading around $6,000. Whereas on other exchanges, it's around $5,630, $5,640, which means that if you want to buy Bitcoin on Bitfinex at the moment, it's going to be about $320 to $360 more expensive. And the reason for that is because of the lack of trust. And Tether, the lack of trust and Bitfinex in general, clients are trying to bring their money out. And when they do that, basically the demand for Bitcoin actually goes up. So the important thing to remember here is not the amount, I mean, it's worthwhile keeping an eye on the amount. It seems that the premium is not able to exceed about $400 because then you'll get like some arbitrage traders who will, you know, sell or who will bring their money into Bitfinex in order to arbitrage that premium. But the important thing to remember here is that if there is any sort of erosion in the trust of Tether or Bitfinex, there's $2.8 billion in Tether's market cap at the moment. So that money is most likely to cause buying pressure on Bitcoin as we're seeing here. Thanks a lot. So now talking about the news about Facebook Coin. We know that this is a project that it's very real and it's being developed right now. So what do you think Facebook Coin is going to be a competitor of Bitcoin or they are going to coexist peacefully? And do you see any impact on the market regarding Facebook Coin? That's an excellent question Giovanni. And the answer is we simply don't know. The fact that we have on the ground is that Facebook has put one of their main managers in charge of this project that they have about a staff of about 40 employees working on a blockchain project. There have been leaks most notably by Bloomberg and the New York Times who quoted sources. Now obviously they weren't able to bring those sources forward or public so we don't know who said what exactly. But we have to realize that, you know, the New York Times or Bloomberg aren't going to run with a story without actually doing their homework. So we can probably assume that the narrative out there is correct, which is that they're working on some sort of a peer-to-peer coin that can be sent over WhatsApp. This is kind of similar to what Kik is working on with Kin and what Telegram is working on with their TON or Graham coins. So this is most likely what we can expect. The question is going to be about decentralization. We don't know how decentralized it's going to be as Facebook is quite a centralized company. We also don't know how it's going to interact with other cryptos, how they're going to interact with the local regulations. If they want to have a borderless payment system, that means that Facebook is directly going to have to answer to regulators across the globe as well. So at the moment, it's really too soon to kind of speculate what that's going to look like and how it's going to interact with the crypto market as we know it. Okay. And now I wanted to ask you something about the upcoming consensus event. So in the last few years, we always saw the price of Bitcoin rising just before the event took place except last year. So what do you think is going to be the pattern this year? Yeah, so the consensus effect is basically a theory where because so many people in the crypto industry get together, it can actually have an impact on price. Now prices in crypto is not too far off the truth because a lot of prices in crypto are actually relying on network effect. And when you get so many people who are part of the same network, and then they are able to strengthen their connections by meeting face to face, this actually strengthens the entire network. So yes, I do believe that the consensus gathering where so many people are going to be able to see each other shake hands, work on deals that they've been planning on, start setting things in motion that certainly strengthens the crypto community and the crypto environment as a whole. Whether or not that translates immediately into price, we'll never really know until it happens. So let's talk about fidelity. Fidelity is going to introduce trading, crypto trading for institutional investors. This is like a very big news. What do you think? What's going to be the impact of that? That's a good question. And Fidelity has been working on this for quite a while. We know that they've done a soft launch, so they probably onboarded some of their customers who are most interested already. It seems very positive from everything that I see. I mean, they're certainly not the first institutional player to offer crypto for their clients, but they are actually very likely to be the biggest. What the demand from their clients is going to be, we'll have to wait and see. But I think that this is something that can move the liquidity of the entire market significantly forward. So how much money from institutional investors do you see coming into the space after Fidelity will launch its service for institutional investors? Well, we can really only speculate on that. I know that they have upwards of a trillion dollars under management. Let's say even 1% of that, if that goes into crypto, if all of their clients diversify with 1%, they think that's maybe a bit of aggressive to think about. But if we think about in those terms, that itself could drive the price of Bitcoin up $1,000, $2,000 easily. The question though remains, are they going to see that kind of demand? My feeling is that it'll take them a while before they're able to explain to their customers how this is beneficial for their portfolio. And then it'll take a while before the crypto market looks attractive enough for those customers. It could all happen at once. It could happen over time. It is worth keeping an eye on. Yeah, thanks a lot for having me. Have an awesome week ahead. This episode is sponsored by Trade Santa. Trade Santa is a cloud-based trading bot. Set it up in less than two minutes, trade multiple pairs, choose between long and short strategies, use tech analysis indicators, and see your results in real time. Trade Santa works 24 seven to get you the profit you set. The platform is already integrated with Binance, BitTracks, Bitfinex, and HitBTC. The link is in the description below.