Vinny Lingham, the CEO, and founder of Civic, an identity protection, and management startup discussed the current condition of the cryptocurrency markets, the crash of Bitcoin and the possible reasons for the crash.
In the interview with CNBC, Vinny Lingham explained that the crash was not over yet and that Bitcoin hasn’t really hit the bottom. According to him, the market is in a “despair state” because Bitcoin has dipped below the $5,800 support which most people considered as the bottom for Bitcoin’s downward spiral.
He went on to say that the bottom for Bitcoin might be just around the corner but one can’t really be sure about it, and it could either way. Lingham said:
“My best guess would be somewhere between $2,000 to $3,000, but it could go lower it might be higher but you know, it’s not $500 obviously but I think the current $4,000 level is getting closer.”
Lingham added that he wasn’t just guessing the bottom and that it was based on market fundamentals and basic economics. He also mentioned that there were too many companies in the crypto-space that were not generating enough revenue since the sellers in the current markets have overpowered the buyers. For these companies to generate revenue, fiat money is required which comes from the buyers in the market.
Vinny Lingham added to the above point and established his support for the crypto-verse, saying:
“I’m a big believer in crypto for a long-term and I think we’re gonna have market caps in the trillions but right now we’re gonna have to take some pain because we got over-exuberant.”
To explain the reason for the sudden and brutal collapse in the market, Lingham directed towards the recent forking of Bitcoin Cash. He said that there were a number aspects that resulted in the crash of Bitcoin’s price and that the “hash wars” was one among them. He also said that institutional facilities like Bakkt or Fidelity wouldn’t get into the market, as there is too much risk involved.
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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