It’s been a year since Bitcoin (BTC) reached its all-time high of nearly $20,000 and the price has only continued to find lower lows since. For the entire year, Bitcoin bulls everywhere made bold calls saying Bitcoin will easily break the all-time high by year’s end.
Former Wall Street banker, founder and CEO of Galaxy Digital Capital Management, Mike Novogratz predicted Bitcoin to reach $40,000 by the end of 2018.
Fundstrat’s Tom Lee has continuously made bullish calls for Bitcoin, stating in October that Bitcoin could still reach $25,000 by the year’s end.
Spencer Bogart, a partner at the venture capital firm Blockchain Capital once predicted Bitcoin to reach $50,000.
The infamous John McAfee made outrageous calls of a $1 million Bitcoin price by 2020, which a prediction he continues to stick to to this day.
Countless other “reputable” names in the financial and investment space have made these types of calls, with all proven wrong.
Back to Reality
At the time of writing, Bitcoin is trading at around $3,500, which is down roughly 82% from the all-time high 1 year ago today. The past year has produced one of Bitcoin’s most detrimental bear markets to date and it isn’t over yet.
However, considering how far down we’ve come and how many positive developments have continued to take place, it seems likely that we are close to a bottom and things will turn around soon.
The Bullish Case for Bitcoin
On CNBC’s Fast Money show on December 17, Bogart did an interview where he attempted to rebuild his reputation from his failed $50,000 BTC by end-of-year call earlier this year.
During the interview, Bogart stated that today’s bearish market represents a fantastic buying opportunity as the price of Bitcoin has pulled back significantly from its previous all-time high of nearly $20,000.
When asked about his previous $50,000 price prediction, Bogart emphasized that his venture capital firm, Blockchain Capital invests for the long term.
He then stated:
Could bitcoin go to $50,000? Absolutely. It doesn’t have the same kind of price-to-earnings, enterprise value to revenue that normally puts a kind of upper bound or a ceiling on a typical early stage technology company […] How long will it take? I’m not sure.
CNBC host and interviewer Melissa Lee criticized the bullish belief that’s shared among investors and notable names in the space. She stated that it’s hard to believe these people and share their mindset when their calls have all proved wrong.
In response, Bogart explained that there is nothing wrong with this bull thesis and noted that speculative retail investors entirely led the bull run. Which means the market will experience these exaggerated peaks and lows.
According to Bogart, the fundamentals of Bitcoin have not changed, and have even gotten stronger during this bear market. In particular, he praised the advancements of the Bitcoin Lightning Network, explaining that it allows users to transact BTC extremely cheaply and quickly.
To further back up his bullish case on Bitcoin, Bogart said increased institutionalization of the asset class through institutions such as the Intercontinental Exchange’s (ICE) Bakkt, Nasdaq, and others reinforce his belief in Bitcoin’s future.
He also proclaimed that the best and brightest minds are captivated by Bitcoin and are working towards its development and success.
Time to Buy Bitcoin?
When asked Bitcoin’s current price was a good buy or if it could go lower, Bogart said:
Could we go lower? Absolutely, I think anywhere between here and $2,000 or even $1,000 is just a fantastic buying opportunity. I think when we look back 24 or even 12 months from now, we’re going to say, ‘why didn’t I buy then?’
Do you think Bitcoin is a great buying opportunity right now? Are you buying Bitcoin at these prices? Let us know what you think in the comment section below.