A crypto trader has made the claim that Bitcoin price hasn’t hit bottom yet and that its price could sink even lower than what it is now.
Ran Neu-Ner: ‘Key Level to Watch Is $5,000’
It seems that with each new day new, Bitcoin price projections arise that people think the cryptocurrency will either fall or rise to. Today brings that of Ran Neu-Ner, host of CNBC Africa’s Crypto Trader. Speaking on CNBC’s Fast Money, Neu-Ner said:
We keep going down, and we’re testing new lows. Sixty-two-fifty is the next point. If it goes under that, we’re going to test 5,900.
He added, though, that a key level for miners to look at would be $5,000. He said that miners may start to question whether it’s still profitable to mine for the cryptocurrency if it drops to this price. He argues that if an upward trend is not seen, “then we may see a very different game in mining.”
These are thoughts that have been voiced by Tom Lee, co-founder of Fundstrat Global Advisors. In March, he questioned whether the digital currency was still profitable to be mined when it was trading around $8,000.
The digital currency has had a tough first six months of the year. Considering Bitcoin was trading near $20,000 mid-December, the letdown in Bitcoin price has to be demoralizing for those who jumped onto the bandwagon during those halcyon days. At the time of writing, Bitcoin is valued at $6,800, according to CoinMarketCap. Over a seven day period, it represents a near 9.70 percent drop. Since its value in December, Bitcoin has declined in price by 65 percent.
According to Neu-Ner, though, the industry remains in its infancy and that these things are expected. Of course, he remains optimistic as to where the market is heading. Even though the industry capitalization is valued at $295 billion, a significant drop from its $830 billion at the beginning of January, the market could reach $20 trillion one day, he said.
Now Is a Good Time to Buy
He went on to say that with prices at such low values, this could be the time to buy into the market. This is particularly so if traders are interested in long-term value, such as three to five years. He said:
It could go to 20, 30, 40, [or] 50,000. Then no one cares whether you bought it at 5 or 6.
The founder of Pantera Capital Management is another who thinks now is a good time to buy Bitcoin. However, in a report at the beginning of the month, he claimed that it had reached a bottom when it was valued at $7,650.
What do you think? Do you believe Bitcoin’s value will go lower or will it start to rise again? Let us know in the comments below.
Images courtesy of Shutterstock.
