Dan Roberts, editor-in-chief of Decrypt, joins the Yahoo Finance Live panel to stop Bitcoin’s wild movements.

Video transcript

SEANA SMITH: But we want to talk about crypto because I know that many of our viewers have been watching this topic closely over the past few months. There was another trend over the weekend as Bitcoin was above $ 61,000. We’re seeing some sales in Bitcoin today, but here to help us break it down, we’d like to welcome back Dan Roberts, Yahoo Finance alum.

Now he is the editor-in-chief of “Decrypt”. And, Dan, it’s great to see you again. But help us understand what is going on in Bitcoin and of course the broader crypto market in general because I know there is a lot to talk about. But at least when it comes to Bitcoin, we see it pulling back a bit today, roughly $ 56,000 – how do you judge the latest action we’ve seen?

AND ROBERTS: Nice to see you all again. And I would start by saying that Bitcoin does just that, right? We see it make certain new highs and then we talk about resistance levels, resistance bands. We first saw that $ 60,000 mark over the weekend, and then it went up to $ 61,000. Now you have a retreat.

And in many ways, people expected a retreat. We can already see that activity on the stock exchanges is picking up again. There is interesting data released by Glass Node over the past two hours on the idea that we will likely see them go back up, rather than dropping below $ 50,000. But look, we saw the same kind of resistance band when Bitcoin – well, I say back when it was not that long ago – first hit $ 40,000 and then hit $ 45,000.

It hits certain mental milestones and then pulls back a little when people are taking profit. Now I would also like to point out that we had some news from India today. The regulators there have said nothing else than to inform “Reuters” that a ban on crypto mining in India is imminent. Well, the expectations regarding a crypto ban in India have been there for months and we reported about it at “Decrypt”.

The story goes on

It is also worth mentioning that the financial regulator there has also indicated that there will soon be an experimental phase. Many people will tell you that India is unlikely to ban crypto mining, but I think that news today did not help in the Bitcoin withdrawal. Of course, there’s also the explosion in the NFT market and an irrational exuberance – these digital blockchain collectibles.

ADAM SHAPIRO: Yes, we are going to talk to you about NFT one day, but I want to talk about Bitcoin. Because in conversations with you in the past you have talked about how legitimate it really was, maybe a store of value. And there was an article this weekend that said people may be avoiding gold to protect the wealth gains made through Bitcoin. Now gold is on the rise, but bitcoin is clear – you can actually do more with bitcoin in this world than you can do if you hold gold.

So is the argument that Bitcoin is just a fad or that it really doesn’t have any as a store of value? That really should be dismissed or not?

AND ROBERTS: Well, it’s interesting, Adam. It depends who you ask. I think I would mention that we only spoke to Mark Cuban on “Decrypt” last week, and I thought he framed things in interesting terms. He said, arguably all of these people out there who consider gold a store of value, the only reason they do this is because they bought their way into a particular narrative. The tale of gold is a real thing, it’s a hard commodity, we use it in jewelry.

Even if you buy a bit of gold ETF on an exchange, you know that gold bars are in a vault somewhere and that you have a certain amount of money. Bitcoin is purely digital, but it’s the same. It’s just a narrative. It only has value because a large group of people have decided it has value. You bought your way into the narrative.

Those who like gold say gold bugs on the one hand, and those who rejected Bitcoin and say it’s not digital gold have only overcome this hurdle of understanding or believing that it has value even though it’s purely digital. And I think what is happening, Adam and Seana, is that value is moving digitally in many examples. We don’t need to deal with NFTs another time, we need to deal with the same type of example.

And so more and more people are buying the digital gold narrative for Bitcoin. What does that really mean, does anyone want to spend it? I mean, Tesla came out and said we’re going to allow people to pay in bitcoin. I don’t think anyone wants to spend their bitcoin right now. They want to hold on to it and hoard it.

SEANA SMITH: And, Dan, we have to talk about NFT at another time because this is insane in itself. But real quick, just to follow up there, and it’s something that you and I have talked about in the past and that is this interest here at Bitcoin and how the recent attempt had to do with the fact that institutional corporate investors were involved this time around . Do you think this is still the case, or is much of the action we’ve seen, at least recently, speculative in nature?

AND ROBERTS: Yeah i’m glad you said that I mean, this attempt, which began in the midst of the pandemic, everyone kept saying that it was institutional, it was institutions. Yes and no. First, it’s not just the institutions we usually mean, right – Wall Street hedge funds, investment firms, and sophisticated investors. But there are also listed companies that buy Bitcoin for their balance sheet, these institutes.

And even now that it continues, it is not just institutional. There are also private investors again. It’s kind of a perfect storm of multiple narratives – I keep mentioning how narrative this space is – that converge at the same time. Now, however, you’re talking about institutional buy-in, and really sticking to it. Now, if you look at the statistics, there are fewer Bitcoins floating around for trading than ever before.

And that suggests you have long-term buyers – some of them are whales, big, wealthy individuals, others are long-term holdings firms. They have taken their holdings out of the exchange, and that suggests a belief in digital gold, the store of value.

SEANA SMITH: Dan Roberts, it’s always good to see you. We’ll get back to you soon. Thank you for signing back in to Yahoo Finance.