"Bitcoin was too expensive all year"
While some industry experts expected the recent crash of crypto for months and months, many "common" investors were caught unawares by this rapid sales crisis. With the intention to clarify the air surrounding this sale, which sent the Bitcoin (BTC) to $ 4,500 freefall, CoinTelegraph has recently brought a number of industry leaders to assess the market conditions .
Tone Vays, a former institutional trader who became a maximalist Bitcoin, first noted that in his opinion, it was not a factor that catalyzed the recent crypto collapse, nor was it a catalyst behind the monumental installment of Bitcoin throughout 2017. In a few words, the trader noted that BTC was "too expensive" and it was the last year.
The guru then pointed out that the rapid fluctuations of BTC's parabolic prices are a common sight, due to the fact that most cryptographers often lose focus on what makes Bitcoin so important. Vays explained:
BTC constantly loses 80% or 90% to make sure that people know what they are doing, that they understand why they are at BTC. And I think there are so many big Bitcoin buyers and they were not buying it for the right reasons. They were buying it to make money and become famous and earn money for their investors.
He added that those seeking to make a profit and only a profit should exit the market completely. Anthony Pompliano (Pomp), reiterated the point of Vays that the recent sale of crypto has not been catalyzed by a single factor, not even by the litigious crossroads of Bitcoin Cash or by an initial liquidation phase.
Pomp explained not to worry about the daily price action, but rather about the long-term price trend.
Once again, Alex Tapscott, the co-author of Blockchain Revolution, the bible and the crypto primer, reiterated this sentiment that BTC was evidently overvalued, adding that the current correction was not fundamentally based. Instead, the 10-month bear market and the recent downtrend can be exploited until liquidity escapes, as traders begin to realize that the cryptocurrency market has been well overbought. It is interesting to note that Tapscott, a Canadian entrepreneur, has raised another astute point, stating:
And then what is making the difference is that in the last year, a group of people has gone and raised a lot of money for the funds that are approaching the maturity of a year in which usually investors are able to to redeem. So it would not be surprising if I saw many of those different types of investors redeem now.
"Not enough pain yet"
Asked about the short-term prospects of Bitcoin, Pomp noted that the psychological argument indicates that there is still not enough pain, which means that a true background / capitulation phase has not yet been reached. The manager of Morgan Creek Digital Assets, a central bank detestor, then explained that from a technical point of view, a probable possibility is from $ 3,000 to $ 4,000 for BTC.
From a historical perspective, Pomp also explained that a lower price of $ 3000 could also be logical, noting that historically, Bitcoin drawdowns were 80% +, before adding that this year was & # 39; only & # 39; of ~ 75%.
Keeping this in mind, $ 3000, or a decline of 85% from the all-time high of 2017, could be in the short-term Bitcoin cards, so to speak. Vays echoed this feeling, explaining that $ 3000 is a price point to watch, telling CoinTelegraph viewers that once BTC reaches the $ 3,000 zone, it would be a good idea to start accumulating.
While the two above statements have not painted the nicest picture for Bitcoin, all three industry experts have maintained their long-term belief in this industry and revolutionary innovation.
Title Image Courtesy of Andre Francois via Unsplash