Michael Moro Acknowledges The Crypto Market Ugliness, Optimistic Bitcoin’s Bottom Is $3,000
In an interview with CNBC, Michael Moro, CEO of trading firms Genesis Trading and Genesis Capital Trading, revealed that he expects to see a continued downward trend, ‘until you kind of hit the 3K-flat level'.
It is believed that Bitcoin, inherently, has a floor since it requires equipment and electricity for mining. Moro was asked what could be the new floor since BTC price is already below the break-even cost for mining.
“The cost of mining is going to go down, simply because the hash rate is dropping.The largest miners are willing to mine at a loss, up until the difficulty adjustment happens on the BTC network and the break-even cost adjusts over time.”
Moro advised against buying the dip but said long-term investors are more equipped to handle bitcoin’s plunge and wait for the price to rebound.
“This is about the fifth or sixth 75 percent-plus drawdowns that we’ve seen in the 10-year history of bitcoin,”
“And so if you have that [long-term] lens, I don’t believe institutional investors really ultimately care where the price of bitcoin ends in 2018 simply because they’re looking at things three to five years out.”
Drawing a little evidence to his assertion he revealed that investors are starting to recognize Bitcoin, with its weaknesses, powers, and all. Recognizing that cryptos have endured an onrush unabated stream of criticism for upwards of 10 years. Moro even said that the many investors are comfortable with the approaching Bitcoin prices.
BTC’s moving averages and momentum indicators show that the crypto prices have been going down for no reason, even while trading volumes are as high as it has ever been. Moro asks speculators to stay away from such markets and only people who actually use the technology have to stay.