Spencer Bogart, a blockchain VC says that bitcoin may soon experience another round of selling.
Except this time the selling could be forced.
Bogart goes on to explain why he thinks we could be on the verge of some forced selling saying that many crypto hedge funds came on the scene during the summer of 2017.
Many funds have a one year lock up period.
Which means, we are right on the cusp of one year presently.
Why the forced selling may happen?
As Bogart mentioned above, hundreds of cryptocurrency hedge funds were created in the summer of 2017 when bitcoin prices were booming.
Traditionally, many hedge funds have a one year lock up period were investors cannot get their money out.
Now that prices have run way up, and come crashing back down, Bogart speculates that some investors will want to pull out their funds as soon as they have the option to withdraw, trying to ensure they lock in that last bit of profit before prices fall lower.
This is what is known as forced selling as people will be taking money out whether it is actually a good time to sell or not.
Is this going to cause bitcoin to tank further?
In my opinion, that is not very likely.
Yes I think some people will redeem funds, but there are more funds being created that are stepping in to take their place.
Also the amount of money in these funds is still relatively small compared to the amount of money in the crypto space.
That being said, we might see minor drops here and there as hedge fund clients opt out of funds.
Overall, I think this is likely overblown and anyone hoping to buy artificially lower prices will end up missing the move back up.
Also one thing to note...
Even though Spencer Bogart says that we may see some forced selling in the near term, he still says bitcoin will likely be over $10k by the end of the year.
Which means, anyone buying today still gets roughly a double in less than 6 months, even if this isn't the exact bottom.
That is a pretty good return in this environment, no matter how you slice it.
Stay informed my friends.
Image Source:
https://www.ccn.com/bitcoin-price-hits-2018-low-at-5825-where-will-it-bottom-out/
Follow me: @jrcornel
As much as liquidation by hedge funds due to customers opting out is a factor, I think BitFinEx' USDT ponzy scheme was and is realer than peoples' FOMO.
As long as BitFinEx and its likes exist and rig prices up, the wiser thing to do is to abstain from giving them real USD, because apparently USDT is more fake than USD.
Those whom buy into cryptocurrencies not through BitFinEx still give their money's worth to BitFinEx, because the markets are all intricated.
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There is no guarantee that there is a ponzi going on there. Further, even if there was some shady business going on, they appear to have the funds now, which should remove one of the major systemic risks to the market.
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https://steemit.com/cryptocurrency/@fortified/re-fortified-brock-pierce-or-is-billionaire-bitcoin-board-member-founder-of-tether-and-alleged-pedophile-a-covert-cia-asset-20180118t181617300z
I saw it today because someone resteemed a thread from 5 months ago.
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You got a 75.00% upvote from @proffit courtesy of @stimialiti!
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You got a 32.06% upvote from @sleeplesswhale courtesy of @stimialiti!
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You got a 100.00% upvote from @luckyvotes courtesy of @stimialiti!
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Double my Money! Double my Money! 😁💰😁
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Looking at the chart of 2014-2015, it looks eerily similar to the current bear market. If the same result plays out, bitcoin is going to go a ton higher in the next 2 years.
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I dunno. Spencer Bogart? Sounds like the protagonist from a Tarantino film noir about a detective in 1940's Hollywood. Can we believe a guy with that kind of name? Or am I just too jaded?
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Haha you make a good point. Though I have followed this guy for a while. He generally has pretty good info regarding bitcoin and is very bullish on it medium to longer term.
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In hedge funds, there goes - mosly, I supopose - the "smart money", not the small investors who are used to handle hasty, buying high and selling low.
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Let em sell the bottom. I'll be buying.
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This sounds promising. I hope we are near the low.
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You and me both.
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@jrcornel The Real crypto world thinks Bitcoin has a long Race to go, The one who sells in this Dump will come again when BTC tops ... For sure
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Yes that is likely true. Retail tends to buy the tops and sell the bottoms.
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well for the moment I am still shorting BTC and will start taking profit and changing around 5.7 - 5.2 so all these small pushes down might help.
Once that bottom has come I will be going long again. As anyone my outlook on BTC long term is bullish
on a side note... what does a witness team have to do to earn one of your witness votes? @swisswitness we are aiming to secure and help the steem blockchain to grow. your vote and the ones from anyone reading this would be much appreciated:
witness votes with steemconnect through this link:
https://steemconnect.com/sign/account-witness-vote?witness=swisswitness&approve=1
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What are you plans for helping steem grow?
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we are setting up a system to help out witnesses (for free) to alert them on missed blocks or stale price feeds through email or sms
we are also going to use our SP from the witness (once we get a bit higher since we are only on 100 right now) to delegate to projects that are healthily providing support
apart from that we are setting up regular competitions we are for now paying out of our own pocket.
we are now up to 2 servers and will also be setting up a steem full node when our finances allow that (thats where the extra votes come in)
We are for the moment not powering down but will be doing that to pay for servers in 2 months(only servers, not for our time and effort)
I personally try to be active as much as possible doing manual curation and commenting on articles I like. I am no whale but do feel that my vote and encouragement helps people stay on steem
On a personal note, I live in Switzerland, close to Zug aka the Crypto Valley and am co founder of cryptoworldzug.io .
we recently hosted a conference and had @heimindanger from dtube as a speaker to promote steem and his concept.
so we are helping on different levels and can really use all the support we can get
thanks in advance for your consideration
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There is a lot of speculation on the movement of Bitcoin and currently it seems like the trends are bucking the news.
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Bit coin ligal in India midnight 14th of July 100%
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Is that true or is it just that Indian banks are not allowed to work with Indian crypto exchanges?
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Bastille Day!
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Beautiful bitcoin crypto @jrcornel
Thanks for sharing this...
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Weird they call it "forced?"
Absolutely nothing is being forced. One volunteers to lock up their money, for a higher return. Then, when it matures, they can do whatever the fuck they want.
They COULD go long and hold their BTC. They could give it to a friend or a homeless person. There are dozens of things they can do....none of which are "forced."
Weird.
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Very good point. They use the term forced most likely because they have been wanting to sell for months and months now as bitcoin is significantly higher than where they bought, but are only now going to have that option for the first time in a year. Though, "forced" is probably not the correct word.
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forced to hold more like it
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Its getting fun to see everybody believing all speculations. He predicts it will be at 10k at the end of the year. I have heard so many different predictions over the last few months that I don't believe any speculations any more. The upcomming sell sounds reasonable but the price prediction of 10k at the end of the year is just based on nothing in my opinion. Not saying I have a better prediction but it's really unwise to believe all the things people claim.
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Some are based on round numbers and speculation, others are based a little more on math and projections relating to mining costs. Though you are right, they are all just guesses in the end.
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Very nice bitcoin crypto. I like it bitcoin. I appreciate your blog..@upvote and @resteemit done.
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please don't spam
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