Vinny Lingham, Civic CEO and former Shark Tank investor, recently discussed the price of Bitcoin in an interview for Cheddar.com
With bitcoin continuing its freefall and dropping below $4,000, what can be expected in the coming months? @CivicKey CEO @VinnyLingham joins #CheddarLIVE to examine the scenarios for the market. pic.twitter.com/6vLnoOgnPA
— Cheddar (@cheddar) January 10, 2019
Lingham started the interview arguing that there is a good chance that Bitcoin will retest $3,000 as a bottom, and if it hits that low we will probably see a breakthrough, adding that he believes the market is searching for a new bottom that hasn’t yet arrived:
“The reality is it will probably trade sideways, between $3,000 and $5,000, for another month or two while it is trying to find which way to go. And when it finds direction there will be a breakout or breakdown.”
When asked if trading sideways would be good or bad for cryptocurrencies, Lingham promptly said that sideways trading “is a bad thing for crypto” and agreed that it leads to even more selloffs:
“Bitcoin, in particular, has got this history of bubbles and busts. So, when there is upward momentum the going gets good and everyone gets on board. But the sideways trade doesn’t really help much because, at this point in time, we’ve got more sellers than buyers. That’s a problem, there is no really momentum in the crypto market right now.”
Civic During the Bear Market
The interview then shifted to Civic (CVC), a startup that encrypts identity information on the blockchain. Lingham explained that the decreased interest in crypto has only had a limited effect on Civic. This was primarily due to the fact the team held most of the ICO proceeds in cash, unlike many companies who held onto Ethereum and Bitcoin at very high prices.
Lingham also mentioned that going forward – expenses and the treasury will have to be carefully managed. He ended the interview saying that all companies in the space should tighten their belts and make sure they have enough to get their products to market.
Today (Jan 11), he added another prediction:
The crypto market will rise again, but most likely only when the pain of the recent fall becomes a distant memory. Don’t underestimate the power of psychology in free markets…
— Vinny Lingham (@VinnyLingham) January 11, 2019