Bitcoin is going down, and one prominent cryptocurrency analyst believes it’s still got a ways to go. Nevertheless, the upside potential — in the grand scheme of things — is still massive.
‘We May See a Very Different Game in Mining’
Ran Neu-Ner, founder and CEO of Onchain Capital and host of CNBC Africa’s “Crypto Trader,” believes Bitcoin has not found its bottom.
Neu-Ner told CNBC’s “Fast Money” earlier this week:
We keep going down, and we’re testing new lows. Sixty-two-fifty is the next point- If it goes under that, we’re going to test 5,900.
According to Neu-Ner, $5,000 is the key level that everyone should be keeping a close eye on — and that could prove to be a turning point for those mining the first and foremost cryptocurrency:
That’s where the miners look at this and go, ‘Is it actually worth keeping the machine on?’ At about $5,000, if we don’t get a turn up, then we may see a very different game in mining.
‘One Day This Thing is Going to Have $20 Trillion’
The cryptocurrency host also noted that the cryptocurrency market is still immature and new, so price drops and extreme volatility simply comes with the territory. He told “Fast Money:”
We’re the internet before you had a real browser. And people are talking about a few exchange hacks. Those are to be expected from an industry that’s got a market capitalization of $300 billion; when we expect that one day this thing is going to have $20 trillion [in market cap].
While day traders might do well to stay away from this prolonged bear market, Neu-Ner believes that anyone who actually believes in Bitcoin and/or blockchain technology should consider buying the market leader at these prices. He explained:
If you believe in the long-term of blockchain […] It could go to 20, 30, 40, [or] 50,000. Then no one cares whether you bought it at 5 or 6.
Bitcoin (BTC) is currently trading at $6,600.76, down 3.93 percent over the last 24 hours. The market leader is down 13.37 percent over the last week.