Bitcoin prices could bottom out at $3,000 according to a recent interview with Michael Moro, who is the CEO of the cryptocurrency companies Genesis Capital Trading and Genesis Trading. Before bottoming out at $3,000, Moro believes that some major cryptocurrency will lose an additional 30%. Once the 3K level has been hit, the floor will eventually be found. When addressing some of the smaller resistance levels, Moro thinks that the price of BTC will not be able to stabilize in the mid $3,000’s. The $4,000 level was recently tested twice as well. Most long-term investors plan to deal with the decline in BTC’s by waiting until the price recovers and will also be advised not to buy cryptocurrency while the price is down. In Bitcoin’s 10-year history, this is the fifth or sixth time that there has been a 75% drawdown. Most investors are looking at how valuable Bitcoin will be 3-5 years from now. They are not concerned with where the price of Bitcoin will end up by year’s end. People who are mining Bitcoin also expect to see a decrease. The cost to mine just one Bitcoin alone will fall as a result of a lower hash rate. Additionally, Chinese operators have had to sell their mining devices for less money due to the decrease in mining profitability. The mining machines that are currently available in the second-hand market are selling for only 5% of their original value. The price of Bitcoin has continued to drop, including the remainder of the cryptocurrency market because of an upgrade that was made to Bitcoin Cash (BCH) on November 15th. A partner with venture capital firm CryptoOracle, Lou Kerner, has gone so far as to compare the current decline in cryptocurrency prices to the dotcom boom from the early 2000s. He states that these coins should be viewed in the same way as big companies from the dotcom bubble, such as Amazon. Kerner also asserts that Bitcoin is still quite valuable and will eventually exceed the value of gold over time. What may be behind the current slump according to Kerner is the fact that outside of confidence, most cryptocurrency has no principal value.
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