Crypto Leaders Weigh In On Bitcoin Collapse, $3,000 Target Touted

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“Bitcoin Was Overpriced All Year”

While some industry savants expected crypto’s recent crash for months on end, many ‘common Joe’ investors were caught off-guard by this rapid bout of selling pressure. Aiming to clear the air surrounding this sell-off, which sent Bitcoin (BTC) freefalling to $4,500, CoinTelegraph recently brought on a number of industry leaders to weigh in on market conditions.

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Tone Vays, a former institutional trader turned Bitcoin maximalist, first noted that in his opinion, that was no factor that catalyzed crypto’s recent crash, nor was there a catalyst behind Bitcoin’s monumental run-up throughout the year of 2017. Simply put, the trader noted that BTC was “overpriced,” and it has been for the past year.

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The guru then pointed out that BTC’s rapid parabolic price fluctuations are a common sight, due to the fact that a majority of crypto traders often lose focus on what makes Bitcoin so important. Vays explained:

BTC constantly drops 80 or 90% to make sure people know what they’re doing, that they understand why they’re in BTC. And I think there are so many big buyers of Bitcoin and they weren’t buying it for the right reasons. They were buying it to make a quick buck and to be famous and to make money for their investors.

He then added that those looking to turn a profit, and a profit only, should exit the market completely. Anthony Pompliano (Pomp), echoed Vays’ point that crypto’s recent sell-off wasn’t catalyzed by a single factor, not even the contentious Bitcoin Cash hard fork or an early-adopter liquidation phase.

Pomp explained that he doesn’t care about the day-to-day price action, but rather, the long-term price trend.

Again, Alex Tapscott, the co-author of Blockchain Revolution, crypto’s de-facto bible and primer, echoed this sentiment that BTC was evidently overvalued, adding that the current correction hasn’t been fundamentally based. Instead, 10-month bear market and recent downtrend can be chalked up to flight to liquidity, as traders start to realize that the cryptocurrency market has been well overbought. Interestingly, Tapscott, a Canadian entrepreneur, brought up another astute point, stating:

And then what’s compounding that I think is that over the past year, a bunch of people went and raised a lot of money for funds which are nearing the one year maturity date where typically investors are able to redeem. So it wouldn’t be surprising if I saw a lot of those different kinds of investors redeeming now.

“Not Enough Pain Yet”

When asked about Bitcoin’s short-term prospects, Pomp noted that the psychological argument points towards the fact that there hasn’t been enough pain yet, meaning that a true bottom/capitulation phase hasn’t been achieved yet. The Morgan Creek Digital Assets executive, a centralized bank hater, then explained that from a technical standpoint, $3,000 to $4,000 per BTC is a likely possibility.

From a historical perspective, Pomp also explained that a $3,000 price bottom could also be logical, noting that historically, Bitcoin’s drawdowns have been 80%+, before adding that this year’s has ‘only’ been ~75%.

Keeping this in mind, $3,000, or an 85% decline from 2017’s all-time high, could be in Bitcoin’s short-term cards, so to speak. Vays closely echoed this sentiment, explaining that $3,000 is a price point to watch, telling CoinTelegraph viewers that once BTC reaches the $3,000 zone, it would be a good idea to start accumulating.

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While the two aforementioned claims didn’t paint the most beautiful picture for Bitcoin, all three industry savants maintained their long-term belief in this industry and ground-breaking innovation.

Title Image Courtesy of Andre Francois via Unsplash