Blockchain

Bitcoin Price Close to Bottom, Will See $10,000 this Year: Analyst

Bitcoin Price Close to Bottom, Will See $10,000 this Year: Analyst

The cryptocurrency market capitalization has dropped by $575 billion since its all-time high, and the bitcoin price has dropped by two-thirds since it peaked near $20,000. But a hedge fund manager believes the trend is about to reverse.

Spencer Bogart, partner at cryptocurrency and blockchain venture firm blockchain Capital, predicted a bullish retracement for bitcoin and the rest of the cryptocurrency market on CNBC’s “Fast Money.” According to him, the recent week’s development in crypto-market could be the main reason why “bitcoin is close to bottoming.”

The week began with TD Ameritrade, a stock brokerage giant, announcing on Wednesday a strategic investment in ErisX, a cryptocurrency spot and futures exchange. High-frequency trading firm Virtu Financial will also give support to the New York bitcoin firm.

On Thursday, veteran financial advisor and billionaire Ric Edelman announced his investment in Bitwise Asset Management, a renowned cryptocurrency index fund. And on Friday, David Swensen, who oversees Yale’s $29.4 billion endowments and has earned himself the nickname of Yale’s “Warren Buffet,” reportedly spread his employer’s portfolio by investing in two cryptocurrency funds run by Andreessen Horowitz and Paradigm.

“Towards the end of last year, when we were at the peak of this bulls market, bad news seemed to have no effect on the markets […] Now we [see] the other side of that when we have a week of news with TD, Ric Edelman, and Yale, and it has almost no effect on price,” Bogart said.

The bitcoin analyst believed that the crypto market would not react immediately to these events, but the inbound institutional capital will prove to be the building blocks of the next bull run. The sentiments appear in line with the 54 percent institutional players who, according to a Fundstrat survey, also think bitcoin has bottomed out already.

Big Players Long on Bitcoin

Institutional investors under the threat of the mainstream market’s instability have started looking into the $220 billion cryptocurrency market as a part of their risk spread exercise. Big buyers have replaced individual investors by pouring in millions of dollars into the crypto space via over-the-counter trading. Under an ideal circumstance, this could mean cryptocurrencies like bitcoin could achieve more stability as larger capital gets distributed among a few players.

“What that’s showing you is the professionalization that’s happening across the board in this space,” Cho said. “The Wild West days of crypto are really turning the corner,” said Bobby Cho, head of trading at Cumberland, which handles OTC trading for cryptos.

Big money confirms a tight grip on the market action. Consequently, institutional players that have gone long at the bottom would not want to take their investment out anywhere below their entry position. Perhaps that is the only reason why financial experts like Bogart appears confident about the crypto’s much-awaited bull run.

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