Mike Novogratz a few months back believed that Bitcoin may have bottomed at around $6,200 to $6,500. But after Bitcoin Cash hard fork, it proved that it isn’t done in its bearish ways this year. Bitcoin in 2017 was able to reach near $20,000. However, by 2018, regulatory changes from different countries spread FUD (fear, uncertainty, and doubt) among its investors.
After the Bitcoin Cash hard fork, Bitcoin dropped below $6,000 until it has now settled below $4,500. And this is the exact reason why some economists are even calling cryptos as a bubble.
Now, the question in a lot of people’s mind is when is this going to hit bottom? Will it even go lower? The sad news is that it can potentially still go lower. Michael Moro who works as Genesis Trading & Genesis Capital Trading chief thinks that Bitcoin could still bleed by another 30 percent before it reaches the bottom.
He said that “You really won’t find (the floor) until you kind of hit the 3K-flat level”. He also added that “It’s really difficult. There are small levels of resistance”. He discussed that “We’ve seen the 4,000 level get tested twice now in the last couple of days, but I really don’t think there’s too much in the mid-3s”.
Should You Buy or Should You Sell Now?
So what should you be doing next? Is it a good idea to HODL Bitcoin at this point? There are those experts and investors who are still hopeful that Bitcoin can bounce back soon considering the launch of Bakkt and even the possibility of having Bitcoin ETF soon.
But for Michael Moro, he gives a more practical advice. He is against buying the dip. However, he said that long-term investors are more equipped to handle Bitcoin’s plunge and wait for the price to rebound. It has been reported as well that there are whales that recently moved a significant amount of Bitcoin into their wallet when the price dipped below $6,000.
He mentioned that “This is about the fifth or sixth 75 percent-plus drawdown that we’ve seen in the 10-year history of Bitcoin”. He also added that “And so if you have that (long-term) lens…I don’t believe institutional investors really care where the price of bitcoin ends in 2018 simply because they’re looking at things three to five years out”.
Ripple has been partnering with institutions. And so far, it has minimized the dips that XRP experienced. Now, Ripple has even landed in the second spot of the top cryptocurrencies based on market capitalization. Ripple is rumored to be partnering with Bank of America. It has also partnered with Santander and even Western Union.
Now, will more institutional investors invest? There is the possibility of having a Bitcoin ETF. The Solid X and VanEck proposed Bitcoin ETF is believed to have the strongest chance of getting approved. Could this mean that it is going to be easier for institutional investors to get involved? And also, the US Securities and Exchange Commission started to crack down on startups that are selling unregistered securities. Could this bring regulatory clarity in the crypto market?