Ran Neu Ner is well known for his role as the founder of OnChain Capital and the host of Crypto Trader on CNBC. He recently took the time to go on the ‘Fast Money’ segment of CNBC to talk about Bitcoin, which is directly related to the sudden $250 decline in value within just three hours today. Following the major loss are Altcoins, which lost a lot more in that time.
During the segment, host Melissa Lee joked about the dip below $6,000 for Bitcoin, saying,
“You hear that. Yup, the sound of crickets. The crypto buyers are nowhere to be found.”
This loss came as no surprise to Ran Neu Ner, since he actually predicted the fall two weeks ago.
When asked about what direction that Bitcoin may be going next, he replied,
“Look, unfortunately, the same model that told us that we were going to $5900 is telling us there is more ‘blood’ to come. It’s calling a 62% of a bear market, and a bear market means we are going to test $5350 as the next point.”
Ran also said that there’s “about a 16% chance of a bull market,” suggesting a change in value. The only way that this would become more likely would be at the $7000 to $7400 range.
Since it still remains unlikely that the latter option would occur at all, Ran remains confident in his “bearish” comment” for now.
He also said,
“So right now, my money is on the market continuing to go down and going down to about $5350, which is the next stop. And the time horizon there is about the next two weeks.”
He added that this is a good time for long-term investments for consumers that “understand the technology” behind it.
Bitcoin Prices And Mining
‘Fast Money’ is usually quick to bring up the $5900 figure, which is largely due to the fact that it costs $6000 just to mine Bitcoin in the first place. The host brought up this figure against to make just this point, referencing the major role that mining costs place in the value of Bitcoin.
In response to curiosity over the continued decline, Ran said,
“So what’s going to happen is when the miners find that it is not viable for them to mine, what they are going to do is to switch off their machines. And there are going to be fewer machines in the ecosystem.”
Ran was completely right. With the information provided about cryptocurrency and blockchain, the miners already took the time to shut down their devices. Hash rates immediately dropped by 30% within 72 hours. However, the full adjustment is still a week away, which will let the hash rate go down further and may help to reduce the costs of mining for better profits.
— CNBC's Fast Money (@CNBCFastMoney) June 28, 2018
Bitcoin has been on a downward spiral in value since the beginning of 2018. In a matter of time, consumers will see exactly these changes play out.