According to Civic CEO, Vinny Lingham, Bitcoin’s immediate future does not hold any amazing economic growth, rather it seems as though the currency is destined to largely remain ‘range-bound’ for the coming 6 months (during which the premier alt-asset could even slide below the $3,000 mark).
Speaking about the ongoing financial crisis on CNBC’s Fast Money, Lingham implied many times over that Bitcoin trading will remain restricted between $3,000 and $5,000 for a period of at least 60-180 days (following which some positive momentum may be observed). When questioned regarding whether the price of BTC will side below the $3,000 support level, Lingham mentioned that there will be a “a lot of buying in the short term around that mark.”
With that out there, Vinny also went on to say that:
“If we do not get out of the crypto sort of bear market cycle in the next three to six months, that $3,000 level could go.”
More On The Matter
Elaborating on his current financial predictions, Lingham told CNBC that as things stand right now, it is extremely risky for investors to go out and buy BTC. However, this risk also comes with its fair share of potential rewards incase the market does turn in the near future.
“I think, the risks right now outweighs the upside in the short term anyway. There will be better opportunities later on. You may have to pay a bit more, but […] buying in at that level [$5,700] or $6,000 in the future would be obviously higher price, but you will be more de-risked if Bitcoin can get back to that level and make a run back to its previous highs.”
Lastly, on the issue of the ongoing slump affecting the development of Bitcoin based digital platforms, Lingham said that while it certainly did have an effect on the crypto dev community at large, the real issue that needs to be looked at is the “future proofness” of Bitcoin based technologies.
In regards to Bitcoin being an efficient store of value, Lingham added that the asset “does not” really qualify as an effective long term value storage option (nor can it compete with conventional payment processors such as MasterCard or Visa).
It is also worth noting that a couple of days back Galaxy Digital founder Mike Novogratz stated that he is quite confident that the current crypto market will rebound “by next year”. To elaborate further on the matter, Novogratz claims that in early 2019, “the price of most premier alt-assets will start moving upwards again.” If that wasn’t enough, he also believes that 2019 will be the year when a whole host of established financial institutions will transition from “investing in cryptocurrency funds to investing in cryptocurrencies proper.”