Spencer Bogart believes that another Bitcoin price plunge is imminent. Bogart, who is a partner at Blockchain Capital, a crypto-focused VC firm based in San Francisco, made this assertion in a recent interview with CNBC. Bogart is himself; a self-professed cryptocurrency bull, foresees another problematic time up ahead for the top-ranked cryptocurrency. BTC has declined steadily in 2018 falling to a third of its all-time high (ATH) in mid-December 2017.

According to Bogart, the next price dip will come as a result of forced selloffs by cryptocurrency hedge funds. In 2017, the market boom resulted in the emergence of numerous cryptocurrency hedge funds. However, the crypto winter of 2018 has caused a massive dwindling in their fortunes. Some have even gone out of business.

During the interview, Bogart revealed that many of the surviving crypto hedge funds from last year are fast approaching their “one-year lock up.” As a result, investors will have access to tied up Bitcoins that they may be tempted to offload to recoup their losses. Bogart also identified liquid providers – intermediaries between cryptocurrency exchange platforms and brokers as likely candidates to sell, saying:

They’re 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.

Typically, the cryptocurrency market responds to massive selloffs by experiencing significant price dips. Thus, it isn’t outside the realm of possibility to expect the same pattern to hold true if indeed, hedge funds decide to liquidate their holdings.

Bogart also advised people contemplating whether to invest in the market. With prices reaching their lowest level in all of 2018, some investors might be eyeing a go at the market. According to Boggart:

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 not to try and time the market and try and average into it.

Another cryptocurrency expert, Brian Kelly, believes Bitcoin has reached a new bottom, saying:

We saw bitcoin hit new lows; I think we went to $5,779. And then within about 10 or 15 minutes, you had a huge ramp up, hundred, two hundred points, and that’s typically the action that bitcoin has shown at bottoms.

The post Another Bitcoin Price Decline is Imminent Says Spencer Bogart appeared first on UNHASHED.

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