‘To be or not to be,’ goes the famous phrase in William Shakespeare’s play, Hamlet. For crypto investors currently, the question is to buy or not to buy. While the current Bitcoin price may seem alluring for some, one expert advises against it, urging investors to wait it out and observe the market first. Vinny Lingham, the CEO, and founder of blockchain identification platform Civic stated that under the current volatile market, the risks are way too many for investors. The opinion is supported by Anthony Pompliano, a partner at Morgan Creek who believes the currency will finish the year at around $3,000.
Bitcoin Range Bound Between $3K To $5K
Speaking in an interview on CNBC’s Fast Money, Lingham stated that he believes Bitcoin will trade between $3,000 and $5,000 for the next six months. Its performance during this time and the overall market momentum will determine where it goes from there.
I think it’s going to be range bound for a while, $3-$5K. At least three to six months. I don’t think we will break through the support level of $3,000 just yet. I think there is a lot of buying in the short term around that mark. But if we don’t get out of the crypto bear market cycle in the next three to six months, that $3,000 level could go.
While some analysts such as Fundstrat’s Tom Lee have predicted that Bitcoin could finish the year at $15,000, Lingham believes that this is quite unlikely. He advised investors against investing in the current market as it’s too risky.
For me, it’s a bit too risky at its current point. […] I think the risks right now outweigh the upside in the short term anyway. There’ll be better opportunities later on. You may have to pay a bit more, but buying in above the key support level of $5,700 or $6,000 in the future will be obviously higher price, but you would be more de-risked.
Lingham further stated that the volatility in the crypto market is the reason institutional investors have stayed away from the market. However, these investors are what the market needs in order to find more stability, creating the classic chicken and egg conundrum.
Lingham’s opinion was supported by Anthony Pompliano, a partner at crypto venture capital firm, Morgan Creek. Pomp, as he is popularly known believes that Bitcoin will finish the year at $3,000, a prediction many crypto investors wish doesn’t come to pass.
In an interview on CNBC’s Squawk Box, Pomp said he believes that Bitcoin’s price in December last year was overvalued. At $19,500, Bitcoin had many more buyers than there were sellers, and this automatically pushed the price up. However, this year has seen more seller than the buyers as the price went down and this is gradually revealing Bitcoin’s right value.
Pomp however defended Bitcoin, stating that despite the slump this year, it’s still up by 400 percent. It is the best performing asset class of the last ten years and has outperformed all the other assets, stocks included.
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