In one of the worst bull runs since the correction of February, the cryptocurrency market has been in a slump. As of today, it is in a correction for 190 days, which is approximately 6 months.
Bitcoin, in particular, has taken a hit, shedding 69% of the value from its all-time high. From a high price of $19600, it is currently trading at $6228.
Spencer Bogart, a partner at Blockchain Capital, spoke on the recent bearish trend in the market. He does hold an extremely bullish view on Bitcoin and gave his reasons for believing so. He said:
“A lot of the ICOs are very overvalued. Bitcoin has the mineshare, the distribution, and almost every major country has a major fiat onramp.”
He also said that Bitcoin is the safest, from a regulatory perspective. This is in respect to the SEC agreeing that BTC is not a security, due to the fact that it is decentralized and does not represent a stake in a company.
Both Bitcoin [BTC] and Ethereum [ETH] are safe from being declared securities, said Bogart. He went on to say that Bitcoin has proven used case and that it has traction. He also stated that Bitcoin has demonstrated the ability to move value around the world and store it.
On the current state of the market, Bogart stated that the dip might be caused by the 200 to 300 crypto hedge funds initiated in the summer of 2017. That particular period last year was a hotbed for investing in cryptos due to the upsurge in interest.
He stated that as the funds are hitting the end of their 1-year lockup, investors are realizing that the price is down by 50% in the year. This, in turn, leads to the redemption of the fund, which means force selling in the market. This indicates a continuation of the current bearish trend.
Even as these funds are pushing the price down, Bogart stated that prices are good to buy right now for Bitcoin and that there is increased selling pressure. However, he said:
“I don’t think trying to hit the bottom is a good strategy. Don’t time the market and average into it. That’s what I’m doing.”
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