In to an interview with CNBC, Spencer Bogart, Blockchain Capital partner disclosed that he is “super bullish on crypto right now,” nonetheless, he has admitted that the price of bitcoin in the crypto-market may dip further, therefore, compelling the sales of new cryptocurrency assets.
The ‘Forced Sales’ of New Cryptocurrency Funds
Bogart gave some important reasons on the long-term market characteristics which made investors not to have pondered on it in the past. Furthermore, Bogart declared that the new crypto-hedge funds that were gotten in the summer of 2017, are “hitting their one-year lock-up” this summer – which implies that LPs (Liquid Providers) are ‘forced’ to sell these hedge-funds when cryptos are down to 50%. Due to the fact that LPs are anticipating for the market to be ‘wrecked’ to sell, these hedge-funds might cause a further dip in bitcoin price.
The Blockchain Capital partner stated in an interview with CNBC’s “Fast Money” on Monday (yesterday):
“If we go back to the summer of 2017 when crypto prices were booming, there was about a 100, 200, maybe 300 new crypto-hedge funds that were formed. They are saying, hey, I want to redeem out of that fund. That means forced selling on behalf of all of these new crypto funds that might have popped up. I think that could take prices artificially lower.”
Bogart also stated that market prices are much overvalued right now – especially with ICOs (Initial Coin Offerings) and inferior altcoins.
The Price of Bitcoin Looking Good at the Moment
On Monday, the price of bitcoin coin recovered after it decreased below $6000 during the weekend. It is important to note that the last time the cryptocurrency reached this price mark was in February, and it also attained its biggest price mark being $19,500 at the end of 2017. However, the increase in price not only occurred for Bitcoin alone but on other cryptocurrencies like Ethereum, too.
Furthermore, as a result of the increase in the price of Bitcoin to $6,254 on Monday at 5:30 pm. ET, lots of investors, have been positive on the crypto-market.
Although, being optimistic on the market due to the recent upsurge in the price of Bitcoin looks rather too early, but the CEO of BKCM LLC, Brian Kelly emphasized he knew the price of Bitcoin would bounce back on Monday due to the signs with “quite a bit of demand coming from Asia.”
Kelly says,
“We saw bitcoin hit new lows; I think we went to $5,779 and then within about 10 or 15 minutes you had a huge ramp up, hundred, two hundred points, and that’s typically the action that bitcoin has shown at bottoms.”
In addition, Kelly disclosed that the price to mine blockchain technology is $5,900; with this, “there’s an incentive for miners to keep that price of Bitcoin above that level.”
On the other hand, Bogart stated that lots of ICOs are looking for potential ways to fund their crypto companies and thus, he also made it clear that since the price of Bitcoin is just fine at the moment, it is advisable not to wait and see if the price will go lower before purchasing.
Bogart said,
“Most people that are going to wait for lower prices will end up paying higher prices than they are today. So I think the right move is to not try and time the market and try and average into it.”
For the latest cryptocurrency news, join our Telegram!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Wikipedia Commons
The post Bitcoin’s price upsurge: More pain ahead? Spencer Bogart thinks so. appeared first on Global Coin Report.
Globalcoinreport.com/ is author of this content, TheBitcoinNews.com is is not responsible for the content of external sites.
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
