With many uncertain about the current bearish trend engulfing the crypto markets, Michael Moro, the CEO of cryptocurrency trading company Genesis Trading and Genesis Capital Trading have come out to state that the leading cryptocurrency, Bitcoin could hit bottom at $3,000. He made this known in an interview with CNBC on Nov. 23.
Making his opinion known on CNBC’s “Squawk Box,” Micheal Moro stated that to hit an absolute bottom, Bitcoin will have to lose another 30 percent. According to him “You really won’t find [the floor] until you kind of hit the 3K-flat level.”
Speaking on the small resistance levels, Moro added that he doesn’t think that BTC price will stabilize in the mid-3s. Not just that, he also mentioned that the $4,000 level had been tested twice in the previous days.
According to Michael, long-term investors will handle price decline nicely and wait for a rebound:
“This is about the fifth or sixth 75 percent-plus drawdown that we’ve seen in the 10-year history of Bitcoin. And so if you have that [long-term] lens, I don’t believe institutional investors really ultimately care where the price of Bitcoin ends in 2018, simply because they’re looking at things three to five years out.”
When quizzed about what the recent price decline could mean for miners, Moro said that the cost to mine one Bitcoin would go down as “the hash rate has dropped.”
It is important to note that the recent price slump in the cryptocurrency markets has affected lots of businesses in the crypto space. As a matter of fact, the drop in mining profitability has forced Chinese operators to sell-off their mining rigs. It was reported that some mining machines were sold for 5 percent of their original price.
Earlier during the week, Lou Kerner, a partner at venture capital firm CryptoOracle stated that the current sell-off could be compared to the dotcom burst experienced in the early 2000s. And according to him strong digital assets should be seen as the big companies that made it out of the dotcom bubble.