Bitcoin may be going through bad times, but bulls are still quite optimistic about its future. Spencer Bogart, a partner at major blockchain and crypto VC firm Blockchain Capital, said this weekend that Bitcoin is still a strong buy despite the recent losses and it will end up at least above $10,000 by the end of this year. He made this comments during a program to CNBC. His comments matter because he is the first Wall Street analyst who took the turn to Bitcoin and cryptocurrencies. He had also written a highly regarded blockchain industry report some time ago.
Bogart was speaking to CNBC Fast Money host Melissa Lee during her program, where Melissa asked him “Is there any situation in which you would tell us Bitcoin is not a buy?”. And his response was:
“The long-term thesis is very much intact… The institutionalization of Bitcoin is absolutely occuring…Every major bank is trying to do something in the space. Either they’re going to be offering Bitcoin to their clients, they’re working on a custody platform or they’re opening up a trading desk. A deeper institutionalization of bitcoin is overall positive.”
Bitcoin is going through the red for last 3 weeks, which is the longest running streak of losses for world’s largest cryptocurrency ever since September 2017’s bear phase. However, Bogart sees this streak as different than the last one in one major way. The difference, according to him, is that this time despite Bitcoin being in a full-fledged bear market no one is calling this phase the “end of Bitcoin”. This is a major change, he told CNBC.
However, Bogart is not very fund of ICOs. He said during his interview that many of the altcoins are highly overvalued and have significant headwind. Therefore, the idea of relative valuation seems a risky one to him, he added. He even went on to compare the ICO boom of 2017-18 with dot-com boom of early 2000s. And then he pointed out some tokens that he would want to sell: Cardano, TRON, IOTA and NEO! On the other hand, he would hold Ethereum, Ripple, Bitcoin Cash and EOS, he added.
On the future of Ethereum, however, he seemed to be slightly undecided. He said that though he’s very constructive regarding Ether in the long term, the network currently has a lot of overhang because of the large number of ICOs built on top of it. Therefore, the future of Ether will also largely depend on the future of ICO space, about which he’s not very positive. Nonetheless, he maintains a ‘Hold’ on Ethereum.
Bogart also cited the recent fiat currency crises as another factor that reinforces the use cases of Bitcoin. Taking all these things into account, he summed up his Bitcoin predictions in these words:
“Could Bitcoin trade lower? Certainly. But do I think it will be higher a year from now? Absolutely… I would bet Bitcoin ends at least above $10,000 in the year.”
For now, however, Bitcoin is not showing any signs of going up. Let’s see what happens next.