Bitcoin bounced back Monday after falling below $6,000 on Friday. But according to blockchain venture capitalist Spencer Bogart, it is still far away from rock bottom.
Bogart, who is a partner at Blockchain Capital said on CNBC’s Fast Money that many of the new hedge funds which popped up during the cryptocurrency boom in 2017 are “hitting their one-year lock up”, meaning liquid providers are looking to sell during a time when the market has been, for lack of a better term, ‘rekt.’
Bogart also claims that prices are still inflated. particularly when it comes to initial coin offerings (ICOs). The same could probably be said about many lower-level altcoins.
Bogart said many ICOs, or initial coin offerings — a crowdfunding way to raise funds for cryptocurrency ventures — in the market today are overvalued. But he pointed out that the price for bitcoin is “pretty good right now” if investors are thinking short term.
Bitcoin, which fell below $6,000 on Friday for the first time since February, reached an all time high of around $19,500 last December. That's a decline of nearly 70 percent. And it's not just bitcoin. Ethereum, litecoin, bitcoin cash and ripple are down for the year as well.
However, the Blockchain Capital partner noted that the price of Bitcoin is “pretty good right now”, at least in the short term. He also cautioned against the wait-and-see approach when it comes to buying the market leader at its bottom. Bogart added: “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.”