Wednesday, May 27, 2020

Vinny Lingham: Bitcoin Could Still Crash Below $3,000

The recent surge in the crypto market has changed the sentiment of the market from bear to bull. Many crypto enthusiasts think the bull run has started, with more gains expected in coming days. However, crypto pioneer, Vinny Lingham, who is at the helm of blockchain identity platform Civic, isn’t convinced that crypto winter is over and wouldn’t be surprised to watch the price retrace its former lows.

Crypto Winter Market Might Not Be Over

Vinny Lingham, CEO of Civic, while discussing what is next for the Bitcoin price with CNBC’s Crypto Trader Ran Neuner noted that he is still not convinced the crypto winter market is over. Vinny still expects the bitcoin price to hold a particular level before he’s ready to concede that the bears have lost control.

Vinny explained that “I’m not buying any bounce right now that doesn’t go to around $6,200 and stays there for at least 24-48 hours as being the end of the bear market cycle.”

Also, Vinny like most crypto enthusiasts concedes that the bitcoin price is near the bottom of the bear market cycle. However, it could have more bouncing to go. His assertion is based on history that bitcoin hasn’t escaped a bear market until the price is two times higher than the bottom. Hence, the current circle could still fall below the mark of $3,100, and $6,200 mark is the clear coast of the bull run. Vinny stated that “There’s absolutely a chance we could go below $3,000. I don’t think the bear market cycle is necessarily over.”

People Have Confidence in Crypto

Meanwhile, the CEO of Binance, Changpeng Zhao, during the same discussion on what is next for the price of Bitcoin stated that the recent surge shows that people have more confidence in Bitcoin.

CZ explained that “The fact that the price can go up so quickly means that there was a lot of money waiting to buy bitcoin and they were really fearing missing out, the FOMO mentality. So the fact that the price can go up so quickly means the money was ready which basically means that people still have a lot of confidence in this industry. It’s not like everyone is scared away.”

Also, CZ cited the example of Binance data to indicate the crypto market is in a bull run. Binance orders are at an all-time high, stablecoin deposits are up, and new user registrations have “jump” according to CZ.

If the bull or the bear will prevail in the near term, the time will justify soon. However, there is always the certainty of long term Bullish run according to all crypto enthusiasts.

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