The events surrounding the cryptocurrency industry this year couldn’t be more different from what happened this time last year. As the price of BTC and other cryptocurrencies started to rise, different people and companies in the industry made price predictions for this year. Some even placed major bets that hinged on the price of BTC skyrocketing. One of the company’s that placed a bet on BTC is BlockTower Capital.
BlockTower Capital Places Bet On BTC But A Rally Seems Unlikely
BlockTower Capital is one of the most active investors in the cryptocurrency space. During the December 2017 rally, the firm predicted that BTC will reach $50,000 by the 28th of December. The company created a contract options worth $1 million on LedgerX. If the price is able to reach and hold the predicted level by the 28th of December, the company is expected to get a thirty-fold rise in profit.
Bitcoin (BTC) Price Today – BTC / USD
One year later, BTC is trading a little above $3600 with a strong descending trend line. There is currently no sign of an upcoming bullish rally that will take the price of BTC up by 1,400% within the next three weeks. This means that the bet isn’t going to end well for the company.
BlockTower Remains Bullish On Cryptocurrencies
Even if the firm’s only hope of winning the bet now lies on the short-term fluctuations of the value of BTC, and the market doesn’t look so good right now, BlockTower is still bullish about cryptocurrencies. Michael Bucella, one of the partners at BlockTower, during an interview with CNBC, talked about the current state of the cryptocurrency market. He referred to what he saw as the short-term scopes of the industry still maintaining his bullish stance.
According to him, even with the current situation, the bear market isn’t not as bad as it seems. He talked about an interplay between strong hands and weak hands that invest in cryptocurrencies. He said that even if the weak hands (speculators) are liquidating their assets to the strong hands, the strong hands aren’t in a hurry to on-ramp free capital.
In his opinion, the recent liquidity and volatility in the industry is persistent because the strong hands are not willing to bulk-buy BTC as the weak hands liquidate. He said that this distress cycle has been ongoing for almost one year and it will most likely stop soon. This is why investors are hoping that BTC will bottom out. Bucella, said that BTC may bottom out at $2000 or $3000.
Bitcoin (BTC) Price Analysis
This morning, BTC is moving lower inside a descending channel. However, it is testing the resistance as it attempts to breakout. Hopefully, the former support might hold the price. This former support is in the same line as the 50% Fibonacci retracement level that is somewhere near $3,600. This means that there is going to be selling pressure at this point. Breaking this level will take BTC above the $3,700 level and pave a way for more gains.
Right now, the coin is trading at $3,602.58. This shows that it is up by 3.10% against the USD with a trading volume of $4,951,245,528 and a market capitalization of $62,740,179,181.