On June 25, Spencer Bogart – a blockchain venture capitalist – predicted “artificial” Bitcoin price drop as hedge funds near the end of their lock-up period.
Bogart warned CNBC over “forced selling” which would drive markets lower. Though earlier this week, he claimed Bitcoin would be above $10,000 by the end of the year.
“[Clients are] saying, ‘hey, I want to redeem out of that fund.’ That means forced selling on behalf of all of these new crypto funds that have popped up. I think that could take prices artificially lower.”
After trading below $5,800, Bitcoin successfully bounced despite news defunct exchange Mt. Gox had stopped the giant sell-offs which had taken prices lower.
Bogart explained that a lot of hedge funds started trading one year ago as Bitcoin began markedly rising in value. However, he remains buoyant about the future market, assuming any suppression would be temporary.
“Most people that are going to wait for lower prices will end up paying higher prices than they are today, so I think the right move is to not try and time the market and try and average into it.”