Don’t Fear the Crypto Volatility

Don’t Fear the Crypto Volatility

Like stocks, the Crypto markets can be volatile as anyone who’s been paying attention or owns any knows. Unlike the stock market, however, the volatility in Cryptos is unbelievably massive and not for the faint of heart. Bitcoin for example swung over 30% in both directions several times last year, and fell 70% from it’s all time high. This is the wild west in this new asset class as we’ve said before, and heavy handed volatility, while unnerving, is normal.

This year we are already seeing more volatility in the stock market, but the crypto space could be on the verge of another run up unlike anything we’ve seen yet. Positive news and institutional big money flowing into the crypto space is a positive indicator for us. For example, on March 8th, it was announced that Eric Scro has joined Coinbase as Vice President of Finance. Coinbase, operating out of San Fransisco, is a digital currency wallet and platform where merchants and consumers can transact with new digital currencies. With over 10 million users, it’s where most of us go to convert our dollars into bitcoin which allows us to then purchase other Crypto currencies.

So who is Eric Scro and why is this significant? Eric was the Head of Finance for the New York Stock Exchange for the last 8 years and has held other leadership roles in investment banking, accounting, and volume based data businesses. In addition to leveraging his deep ties to wall street, Eric will “provide Coinbase with invaluable insight as it continues to expand into new markets”… and “help guide the New York office’s growth across multiple business functions and assist in the development of new product offerings like Coinbase Custody,” according to Asiff Hirji, President & COO. The forthcoming Coinbase Custody is a a digital currency custodian for institutions. This is just one example of why we believe more wall street money will flow into this space driving the Crypto space higher this year.

Don’t fear the volatility in the Crypto market, as we may be looking forward to a very positive year ahead. Keep your positions small, your decisions informed, and your seatbelt tight.