The Bears Are Here: No Belief in Bitcoin, Will Fall to $5,000

Last week we presented two experts who expressed optimism regarding Bitcoin, so now it’s the time of the pessimists; and similarly to last week, this time we also have one billionaire hedge fund manager and one prominent crypto investor. Evidently, they come in pairs.

Ken Griffin, the billionaire manager of the hedge fund Citadel, asserted in an interview that not he nor his firm’s managers believe in Bitcoin specifically, or in cryptocurrencies in general. “I don’t have a single portfolio manager who has told me we should buy crypto, not a single portfolio manager,” he said. “I have a hard time finding myself wanting to be in the position of being a liquidity provider for a product I don’t believe in.”

Why, then, Mr. Griffin doesn’t believe in crypto? Because of taxes. That’s right, taxes. “What people don’t understand with cryptocurrencies versus, for example, the U.S. dollar,” Griffin explained, “you have to have U.S. dollar to pay your taxes at the end of the year. You don’t have a choice.” Unless of course, you do have a choice – and Bitcoin is a choice. In fact, Bitcoin was born and consequently flourished because people had been sick and tired of the old fractured financial system from which they were disillusioned. Not understanding this basic premise is simply not understanding crypto.

The other Bitcoin-pessimist is actually just a half-pessimist. Arthur Hayes, co-founder and co-CEO of Bitcoin Mercantile Exchange (BitMEX), in fact believes that Bitcoin will get to $50,000 by the end of this year (yes, 2018!); but the way to $50,000 passes through $5,000 apparently. “I would like us to see test $5,000 to really see if we put a bottom in,” Hayes said. So if Bitcoin would go down to $5,000, when would it go up and up to $50,000? “I think that through the third or fourth quarter has generally been a positive time for Bitcoin because everyone has come back from their summer vacation,” he concluded.

Interestingly, Hayes’ prediction somewhat correlates with the forecast of TenX’s Dr. Julian Hosp who conjectured that Bitcoin would reach $60,000 by the year’s end, but previously had predicted that it would first fall to $5,000.