Blockchain investor Spencer Bogart forecast “artificial” Bitcoin price suppression June 25 as hedge funds near the end of their lock-up time.
Addressing CNBC, Bogart, who not long ago guaranteed Bitcoin would be above $10,000 before the years over, cautioned over “forced selling” which would drive markets lower.
“If we go back to the summer of 2017 when crypto prices were booming, there was about a 100, 200, maybe 300 new crypto hedge funds that were formed,” he explained.
“[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.”
Bitcoin effectively bounced back after trading under $5,800 Sunday, the generally anticipated dip under $6,000 coming regardless of news outdated exchange Mt. Gox had finished the giant sell-offs which had already taken prices lower.
“Hundreds” of hedge funds started trading a year prior as Bitcoin started expanding in value, Bogart clarified, and in any case staying light about the future market, inferring any suppression would be impermanent.
“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,” he included.