Bitcoin price latest: Will bitcoin break $9,000 this year? How much does bitcoin cost?
BITCOIN’S price might not break out of its slump, according to a cryptocurrency expert who fears a bearish downturn for the digital token.
Trader 'losing faith' as bitcoin prepares to plummet
Bitcoin has already fallen more than 53 percent in 2018 and is worth £5,064.67 ($6,571.52), according to CoinDesk at 9.22am BST.
Ex-hedge fund manager Michael Novogratz is losing faith that bitcoin can recover from its current slump.
Mr Novogratz told assembled attendees at the Economist Finance Disrupted event in New York: “I don't think it breaks $9,000 this year.
“Much of that price pressure came from industry participants needing to sell just to fund the burn rate of the industry.
I don't think it breaks $9,000 this year
“Companies who aren't making anywhere near the revenue they did during last year's crypto boom sold to meet obligations such as payroll.”
The change in attitude is stark – only a year ago, Mr Novogratz appeared confident that Bitcoin could trade for £30,828 ($40,000).
The expert said at the time: “Bitcoin could be at $40,000 at the end of 2018. It easily could.”
Mr Novogratz added big-time investors' money will go to cryptocurrencies in 2019 with a return of the same “fear of missing out" groupthink that ruled as bitcoin surged to almost £15,414.00 ($20,000) last year.
He said it will take until the first two quarters of next year for bitcoin to move above £7,707 ($10,000).
Competing cryptocurrencies ether and Ripple (XRP) have fared even worse than bitcoin and have slumped 65 percent and 76 percent respectively this year, according to CoinDesk data.
The former Goldman Sachs partner believes much of that price pressure came from industry participants needing to sell "just to fund the burn rate of the industry."
He added companies who aren't making anywhere near the revenue they did during last year's boom sold to meet obligations such as payroll.
The billionaire recently said the market could be preparing for another bull run, saying: “You’re seeing now institutions moving in.”
And he added the cryptocurrency will see a surge of 30 percent before the end of the year.
He said: “By the first quarter of 2019 you’ll really start seeing it move.”