While some investors are confident about the long-term growth of the crypto market, the fact remains that the current price has not yet recovered from the big correction in January. The market, which started to pick up in April, failed to sustain its upward momentum and peaked in early May before going downhill once more.
Of course, that’s not saying that the rally everyone has been waiting for will not happen but that the process might take longer than expected. Meanwhile, the well-known cryptocurrency trader, Ran Neu-Ner, gave a warning to all Bitcoin enthusiasts out there: the token’s price could still go even lower.
Bitcoin Might Fall Below $6,000
While Bitcoin, the world’s largest cryptocurrency regarding market cap, might have stabilized in the $6000 to $6,500 range, cryptocurrency trader Ran Neu-Ner believes that the worst is yet to come. The OnChain Capital founder and CEO warned investors that Bitcoin might even fall below $6,000.
Ran Neu-Ner told CNBC:
“Right now my money is on the market continuing to go down.”
He, then, went on to forecast Bitcoin’s possible decline saying, “I’m calling $5,350 in the next week or two.”
Cryptocurrency Mining Could Be Affected
Declining Bitcoin price might also adversely affect crypto mining firms. If the crypto’s price drops too low, the cost of mining the token might become higher than its price making the activity impractical. Neu-Ner stated:
“Mining costs outweigh profits at around $5,000.”
When this happens, the question for crypto miners becomes “’Is it actually worth keeping the machine on?” In fact, Neu-Ner said that some miners have already switched off their rigs as the activity is no longer economically viable for them.
Based on Neu-Ner’s forecast, Bitcoin loses its appeal as a short-term investment. However, given the currently depressed price of the token, it still remains an attractive long-term investment option. After all, “the blockchain is progressing and this thing isn’t going away.”
However, for investors who are not really thinking long term, Neu-Ner feels particularly bullish on two coins: Neo and Cardano’s Ada cryptocurrency. According to Neu-Ner, the Cardano system is highly undervalued.