Consider the following numbers about the crypto space.
We are in the largest and longest correction for Bitcoin that it has seen in years. It’s been in correction for 190 days.
In November 2018, Bitcoin’s price rallied to above $1,000, but then plunged a staggering 85% from then until January 2015.
Bitcoin’s price has fallen about 70% since hitting its all-time high of almost $20,000 in December.
With these kinds of stats, what in the world would one feel bullish about when it comes to cryptos, especially Bitcoin?
As it turns out, there is at least one player who’s not on the bandwagon in bashing the space, and stressing that its demise is imminent.
It’s Spencer Bogart, the CEO of Blockchain Capital. His argument for Bitcoin’s rise, not demise, is so compelling, we thought to highlight it here.
To CNBC this week, Bogart said he was “super bullish on cryptos right now.” With that said, Bogart added that his sentiments didn’t mean that he thought cryptos wouldn’t go lower.
He said:
“Prices are pretty good right now, if I were going to go buy something like Bitcoin. But specifically why prices may go lower, we’re talking about a fund redemption cycle. So if we go back to the summer 2017 when crypto prices were booming, there were about 100, 200, or 300 new crypto hedge funds that were formed.”
Bogart added that now in summer of 2018, a lot of these hedge funds are hitting the end of their one-year lockup [periods].
“That means the [limited partnerships] in those funds are now looking at a down 50% year, and they are saying, ‘I want to redeem out of that fund,’ and that means forced selling on behalf of all of these new crypto funds that have popped up. So I think that could take prices artificially lower. But again I think that the price of something like Bitcoin is very attractive at these levels.”
The altcoin universe
Bogart sees many of the altcoins, especially in the long tail of these coins, as being overvalued.
He said the same was the case for the hundreds of ICOs that the space has been bombarded with.
But when you look at something like Bitcoin, Bogart said he was “very, very constructive because it has the mind share”.Simply, most people know about Bitcoin and the crypto has the distribution to allow it to grow in popularity.
“Almost every major country in the world has a fiat on ramp where people can use their U.S. dollar, or their British pound [for example] to go ahead to buy some bitcoin. And no other coin has that kind of distribution.”
In addition, Bogart sees Bitcoin as being the safest crypto from a regulatory perspective. So while it’s not clear which other coins besides Bitcoin and Ethereum will be declared securities by the U.S. Securities and Exchange Commission, these two are on the safe side of the fence right now.
As you may recall, earlier this month, the SEC came out with a clear statement that it would not regulate Bitcoin and Ethereum as securities.
Demonstrated use case potential
Then there’s the matter of Bitcoin’s use case potential.
About this, Bogart said Bitcoin is the only crypto that has demonstrated its real use case and traction. So if you think about Bitcoin’s ability to move value around the world and to store it, that’s actually happening today, he said.
“People are using it for that exact purpose. It’s not like how people are talking about Uber and how it’s going to change transportation, and they haven’t’ seen it yet. People are writing in the cards today with Bitcoin.”
Wise advice
Bogart said he’s not buying the dip, adding that Bitcoin is definitely experiencing some selling pressure.
For those trying to figure how and when to get in on the Bitcoin and crypto space action, Bogart had these words of wisdom.
“I don’t think that trying to hit the very bottom is a good strategy. I think that most people who are going to wait for lower prices will end up paying higher prices than they are today. Don’t try to time the market, but [instead] average into it.”
This article appeared first on Cryptovest
