The cryptocurrency price rally may soon hit a temporary hurdle, leading to a slight fall, before picking up the pace again. The forecast was made by Fred Wilson, a cryptocurrency investor, and partner at Union Square Ventures. Wilson’s prediction closely follows a general price drop pattern exhibited by most of the cryptocurrencies in the past 24 hours.
Wilson’s statement in his recent blog post was quoted by one of the financial news outlets. He said,
“My gut says we are headed for a selloff in the crypto sector.”
However, given the volatile nature of cryptocurrencies and a variety of influencing factors driving its price, Wilson takes a step back to indirectly state that even though there are all the indications of a selloff, it still might not happen as expected. It is followed by encouraging words about the long-term future of the cryptocurrencies. Wilson wrote,
“ But of course, I could be wrong about that. I am wrong a lot. But honestly, I don’t really care. I will keep buying into this correction or rally, whatever it turns out to be. Because the more important question is where these assets will be in five or ten years. And I have a lot more conviction about that one.”
Ethereum has emerged as a strong cryptocurrency in the recent weeks after its price surged from under the $100 mark to cross $300 in no time. As it continued to trade strongly on various exchanges, the unexpected flash crash of ether on Coinbase’s GDAX exchange, where the price momentarily fell to $0.10 ended up causing a significant disruption to the ongoing trading trend. Coinbase has been since then working on compensating the traders for their losses.
In the same blog piece, Wilson also offers some investment advice to the millennials looking to invest in cryptocurrencies. He advises people to invest in small amounts at regular frequency and to not maintain all investments in cryptocurrencies. By spreading funds over, they minimize the risks associated with cryptocurrency volatility and any other developments that might impact the value of digital currencies.
Ref: CNBC| AVC| Image: NewsBTC
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