Bitcoin [BTC] to lose 30%, bottom at $3,000: crypto trading exec
Michael Moro, CEO of crypto trading companies Genesis Trading and Genesis Capital Trading, said that Bitcoin’s price could bottom out at $3,000 – a potential drop of over 30% – in an interview with CNBC on Friday.
Bitcoin’s price has fallen over $2,000 since the start of the month and is now languishing at a year-low of $4,400, causing many analysts to ponder when the top crypto will bottom out.
“You really won’t find [the floor] until you kind of hit the 3K-flat level,” said Moro, suggesting that Bitcoin could continue its downward trajectory, which would be detrimental to the rest of the crypto market.
Investors that are in the crypto space for the long haul are better suited to handle the bearish movement of the top crypto until there is a market change, said Moro. He also advised not buying BTC at the dip.
Moro talked about the several times Bitcoin had shaved off over 75% of its value in a short period in the entirety of its existence. On the subject of the growing movement from retail to institutional investors, he said, “I don’t believe institutional investors really ultimately care where the price of Bitcoin ends in 2018, simply because they’re looking at things three to five years out.”
On account of the price of Bitcoin crashing, profits from mining BTC have been on the decline. Miners, particularly in China, have suffered through the recent market collapse. When asked about the effect on miners, Moro suggested that the cost of mining one Bitcoin will decrease because “the hash rate has dropped”.
The November market debacle was triggered by the highly disputed Bitcoin Cash [BCH] hard fork, which spurred tensions in the broader market. This set off a series of meltdowns which shaved off over $80 billion from the collective market value.
Lou Kerner, a partner at VC firm CryptoOrcale, had recently drawn comparisons between the recent crypto crash and the dotcom bubble at the turn of the century. He also compared the resilient coins to the companies that had fared better in the early-2000s crash, like Amazon.
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