Bitcoin Bounces Back, But Prices Could Fall Again, Venture Capitalist Says
Bitcoin rebounded on Monday, priced at around $ 6,200 5:30 p.m. ET.
“Bitcoin Bounces Back, But Prices Could Fall Again, Venture Capitalist Says” : But blockchain venture capitalist Spencer Bogart says bitcoin may fall again as the cycle of redemption of funds for many encrypted hedge funds completes its one-year cycle.
“That means forced sales on behalf of all those new cryptographic funds that popped up,” says Bogart. “I think this could push artificially lower prices.”
“Bitcoin Bounces Back,Venture Capitalist Says” : Bitcoin rebounded on Monday after falling below $ 6,000 on Friday. But venture capitalist Blockchain Spencer Bogart, who said he was “over optimistic about cryptography,” told CNBC that prices are likely to fall lower.
“Bitcoin Prices Could Fall Again, Venture Capitalist Says” : “If we go back to the summer of 2017, when cryptography prices were up, there were about 100, 200, maybe 300 new crypto hedge funds,” said Bogart, who is a partner at Blockchain Capital in San Francisco. in “Fast Money” Monday.
“Bitcoin Bounces Back, But Prices Could Fall Again, Venture Capitalist Says” : Bogart explained that a year later, many of these funds are “reaching a one-year deadline.” This means that with the price of several cryptographic currencies falling more than 50%, many liquid providers – the people acting as brokers between the broker and the purse – are looking to sell.
“They’re saying, ‘Hey, I want to redeem this fund,'” Bogart said. “That means forced sales on behalf of all those new cryptographic funds that have come in. I think this could cut prices artificially.”
“Bitcoin”, which fell below $ 6,000 on Friday for the first time since February, hit a record high of about $ 19,500 last December. That’s a decline of almost 70%. And it’s not just #bitcoin. #Ethereum, #litecoin, #bitcoin cash and ripple fell in the year as well.
“Bitcoin Bounces Back,” : But cryptobers were optimistic on Monday as the digital currency rebounded – albeit slightly – to about $ 6,254, Monday at 5:30 p.m. ET.
“Bitcoin News”: Brian Kelly, CEO of BKCM LLC, a venture firm centered on computerized monetary forms, said it “is still early,” however included that he saw the main indications of a #bitcoin return on Monday, including “a touch of interest from Asia “.
“Bitcoin Bounces Back,Venture Capitalist Says” : “We’ve seen bitcoin hit new lows, I think we’ve gone for $ 5,779,” Kelly said in Power Lunch on Monday. “And then, in about 10 or 15 minutes, you had a big increase, two or two hundred points, and that’s typically the action that bitcoin showed in the back.”
Kelly said that $ 5,900 is the mining cost of the underlying blockchain technology and therefore “there is an incentive for the miners to keep that [bitcoin] price above that level.”
“Bitcoin Bounces Back, But Prices Could Fall Again,” : Bogart said many ICOs, or initial offers of currency – a form of crowdfunding to raise funds for criptomoeda companies – on the market today are overvalued. But he stressed that the price of bitcoin is “very good now” if investors are thinking in the short term.
While some investors are waiting to see if bitcoin will get even lower before buying, Bogart does not think this is a good strategy.
“Bitcoin Bounces Back, But Prices Could Fall Again, Venture Capitalist Says” : “Most people who will wait for lower prices will end up paying higher prices than they are today,” he said. “So, I think the right move is do not try and time the market and try and average for it.”