Bitcoin News: The CEO of identity management startup Civic, Vinny Lingham, believes that the current state of Bitcoin (BTC) is not its bottom, the token could probably go below the $3,000 mark. In saying that, he also maintained a positive view of the market for the foreseeable future, that cryptocurrency will achieve legal status.
In an interview on CNBC’s “Fast Money,” Lingham asserts that at three to six months, the bitcoin trading will be range-bound between $3,000 and $5,000. Furthermore, he doubts that the BTC price will break down of the support level at $3,000 since there is “a lot of buying in the short term around that mark.”
Calling buying BTC at current point “a bit too risky”, he also added that with high risk comes high reward if the market does turn. Lingham further stated:
“I think, the risks right now outweighs the upside in the short term anyway. There will be better opportunities later on. You may have to pay a bit more, but […] buying in at that level [$5,700] or $6,000 in the future would be obviously higher price, but you will be more de-risked if Bitcoin can get back to that level and make a run back to its previous highs.”
Lingham continues by stressing that “if we do not get out of the crypto sort of bear market cycle in the next three to six months, that $3,000 level could go.”
For now, he suggests that BTC could go either way:
“My best guess would be somewhere between $2,000 to $3,000, but it could go lower it might be higher but you know, it’s not $500 obviously but I think the current $4,000 level is getting closer.”
Lingham explains that his predictions aren’t merely guesswork, they are based on market fundamentals and basic economics. He noted that too many cryptocurrency companies are not generating enough revenue as currently buyers are overpowered by sellers. Notably, to generate revenue fiat money is required, which is controlled by the miners.
In saying that, he also extended his support to the crypto ecosystem:
“I’m a big believer in crypto for a long-term and I think we’re gonna have market caps in the trillions but right now we’re gonna have to take some pain because we got over-exuberant.”
Lingham blames the current brutal collapse of the market on the recent forking of Bitcoin Cash. He states that a number of aspects have led to this crash and “hash wars” is one among them. Indicating the recent postponing of Bakkt’s BTC futures, he added that institutional facilities like Bakkt or Fidelity wouldn’t get into the current market, as there is too much risk involved.