Michael Moro, CEO of the cryptocurrency trading companies Genesis Trading and Genesis Capital Trading, said the price of Bitcoin (BTC) could drop to $ 3,000 in an interview with CNBC on November 23rd.
Speaking at CNBC's "Squawk Box," Moro suggested that the leading cryptocurrency will lose another 30 percent before touching $ 3,000. Moro said, "You will not really find it [the floor] until you hit the 3K-flat level. "
Moro has faced small levels of resistance, saying he does not think the price of the BTC can stabilize in "the middle 3", also underlining that the $ 4000 level has been tested twice in the previous days.
The crypto trader said that long-term investors are more prepared to handle the collapse of BTC and wait until the price rebounds, while at the same time advising not to buy the cryptocurrency during the dive:
"This is the fifth or sixth 75 percent more drawdown we've seen in the 10-year history of Bitcoin, so if you have [long-term] I do not think institutional investors really care about where the price of Bitcoin ends in 2018, simply because they look at things for three to five years. "
When asked what the low price of Bitcoin could mean for miners, Moro suggested that the cost of extracting a Bitcoin will decrease because "the hash rate has dropped".
The recent decline in the cryptocurrency market has led to a similar decline in mining profitability and forced Chinese operators to sell their mining equipment at a loss. Some mining machines are sold on the market for only 5% of their original value.
The price of Bitcoin continued to fall, along with the rest of the encrypted market, from the update of the bitcoin network Cash (BCH) which occurred on November 15th.
At the beginning of this week, Lou Kerner, partner of CryptoOracle, a venture capital company, compared the current crash in encryption prices at the outbreak of dotcoms in the early 2000s. Kerner said that strong currencies should be seen as the big companies that came out of the dotcom bubble, like Amazon.
In addition, the venture capitalist said that Bitcoin is "the largest store of value ever created" and will exceed gold over time. Asked what could be behind the recent collapse, Kerner said that "cryptography was so weak because [for] for the most part there is no underlying value outside of trust. "