Hedge Funds Selling Crypto May Drop Bitcoin Price
June 27, 2018
Prominent venture investor and Blockchain Capital partner Spencer Bogart in his interview to CNBC predicted artificial Bitcoin price shrink in the nearest time as hedge funds will start selling cryptocurrency.
As to Bogart, many hedge funds that invested in cryptocurrency last year will have their lock-up periods end soon during which investors cannot sell their share of fund. Bogart believes, these periods ending may result in forced sales that collapse Bitcoin price.
“If we go back to the summer of 2017, when crypto prices were booming, there was about a 100, 200, maybe 300 new crypto hedge funds that were formed. [Clients are] 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,” he said.
Meanwhile Bogart stays optimistic and expresses confidence that any reduction at the crypto market are temporary. He added that most of investors expecting the lowest prices to purchase cryptocurrency are going to be late finally and pay much more.
Remember that at the beginning of the year Spencer Bogart cast a prediction that in 2018 price for BTC will reach $50,000. Yet the rate has lowered three times since.