Bitcoin Recovered After Downfall, But Experts Says Could Fall Again
After a series of downfall, this Monday Bitcoin bounces a bit and its price ended up around $6,200 5:30 p.m. But according to Spencer Bogart, a blockchain venture capitalist, it might could fall again as the fund redemption cycle for many crypto hedge funds completed their one-year cycle which could became the reason of making its prices artificially lower.
After falling below $6,000 on Friday, bitcoin finally bounced a bit ended up on $6,200. But blockchain venture capitalist Spencer Bogart, said in a report that “prices will likely go lower.” And he also added that “he is super bullish on crypto now as the prices could fall again.
“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,”
Bogart, who is a partner at Blockchain Capital in San Francisco, said to a newspaper.
Bogart explained that one year later, many of these funds are “hitting their one-year lock up.” That means that with the price of several cryptocurrencies down more than 50 percent, many liquid providers — the people who act as intermediaries between the broker and the exchange — are looking to sell.
“They’re saying, ‘hey, I want to redeem out of that fund,'” Bogart said. “That means forced selling on behalf of all of these new crypto funds that have popped up. I think that could take prices artificially lower.”
Source: CNBC News