Oz Sultan, an enterprise blockchain consultant and fellow Genius, anticipates a big sell off by whales after the forthcoming Bitcoin halving, which takes place in the next 48 hours. But, he doesn’t think all of our attention should be on Bitcoin. He thinks we should be looking at the correlation between the Bitcoin selloff post-halving and the drag that is going to have on correlated pairs, specifically those alt coins that were built based off of Bitcoin.
When it comes to Ethereum, Sultan recognizes there are only about 500,000 active wallets––not that many. He says we need to be looking at a couple indicators. “One is where and how are we moving towards market adoption,” he said. “Two is, what exactly is going to happen in terms of some of the altcoins and the altcoins in the context of a large scale economic downturn?”
That means asking questions about their development plans. “With a lot of these coins, we should be looking at their development plan? What is their engagement plan for getting other people on board? What are their API plans? What are your use cases or utilization plans?”
Sultan sits on the board of Pac Global and recently joined as their CIO. “They’re looking at getting heavily involved in social good and social impact, which I think is pretty valuable,” he said. “If you start looking at products like Digibyte, which has consistently been a decent performer, it has a strong correlation to Bitcoin, because it’s based off of Bitcoin. That’s a good indicator to watch in terms of what some of the pairs are going to be doing with the halving and then a sell off around Bitcoin.”
Sultan is looking at correlations between the stock market and cryptocurrency, specifically Bitcoin, as well as the correlations in between stocks and bonds. “In standard economic theory, if one goes down, you buy the other,” said Sultan of stocks and bonds. “Now, we see they’re moving in concert with one another. So, it’s going to be a very interesting space inside of two weeks post-halving.”
Sultan sees tremendous amounts of possibility throughout the industry. “Opportunity is going to come in to the market for speculators and again, new entrants, because we will be looking at lower prices in Bitcoin post-halving, which you haven’t had in quite a period of time, outside of some of the hits that have taking it below the $6,000 level.”
The broader American and global population is coming into crypto over the course of the next six to 12 months, says Sultan. “The changes we’re seeing in economic strength from the dollar to the Euro, to other currencies, and the impacts that the US digital dollar, is going to have towards the end of the year.
The impact that tokens are going to have towards Q3 of this year, are all going to have some sort of cascading impact on the markets that we’re looking at daily.”
Learn more about what Oz Sultan sees coming in the markets on Genius Wednesdays, every Wednesday at 12pm.