Civic CEO and star of Shark Tank South Africa, Vinny Lingham, is offering his take on the current bear market conditions in the cryptosphere.
In a new interview with CNBC, Lingham said he sees Bitcoin hovering in the $3,000 – $5,000 range for at least three to six months, adding, “If we don’t get out of the bear market cycle in the next three to six months, that $3,000 support level could go.”
Winter is coming for #crypto! The Oracle of #bitcoin @VinnyLingham says to hunker down for a brutal stretch. pic.twitter.com/vRHffh0Bf7
— CNBC’s Fast Money (@CNBCFastMoney) November 26, 2018
When asked why Bitcoin has seen such a large drop-off from its all-time high, Vinny Lingham says;
The issue really is the narrative. The Bitcoin narrative is that this is a store of value, and so people buying in at $15,000-$20,000 believed that and that’s proven not to be true.
He says not only is Bitcoin failing as a store of value, it’s also not practical as a means of transaction due to scalability issues. With these issues contributing to Bitcoin’s price volatility, Lingham thinks it’s causing hesitation from institutional investors. Lingham says;
You can’t have this sort of volatility in an asset class when you want big money to get involved.
He goes on to give similar caution to anyone currently thinking about investing in Bitcoin.
It’s kind of a risky scenario. You’ve scared away the retail investors. You’ve scared away the institutional money.
He says buying right now is high risk / high reward.
If the market does turn, this could be a great time to buy.
But he says there will be better buying opportunities in the future, and the best bet could be waiting until Bitcoin returns to the key support level of $5,700.
This isn’t the first time Bitcoin has seen a massive price plummet. From 2014 to 2015, the price of BTC fell 85% from over $1,000 to under $200 within a year. If BTC were to drop 85% from its all-time high, the price would have to dip just below $3,000.