Chinese Bitcoin Celebrity Zhao Dong Says Bitcoin Will Plunge Below $4000 By the End of 2018
The cryptocurrency market is diving into the red over the past 24 hours after a relatively small South Korean crypto exchange said it was hacked. Bitcoin price dropped over 10% to its two-month low. And one of Chinese bitcoin celebrities believes bitcoin may not reach its bottom of this year now.
Zhao Dong, a famed Chinese OTC bitcoin trader, predicted last Saturday in a Singapore-based blockchain forumthat bitcoin might end the year trading between $2,000 USD to $4,000 USD, then presenting an attractive buying opportunity for newbie traders.
In the long term , however, Zhao is extremely bullish on the largest cryptocurrency. He said in April that the price target of bitcoin would reach 1 million USD, and bitcoin’s secretive creator could become the world’s first trillionaire. Although he has a sunny outlook on Bitcoin, Zhao still said “ it is a still new technology, and many things remain immature at present”.
But the Dfund founder was surprised by crypto investors’ reactions to his prediction as many thought his price forecast was a bullish indicator. He wrote on Weibo, China’s equivalent of Twitter, that “ If most people believe this prediction, then it will be wrong. Why? Because only a small group of investors will make money from the market, and the principle only works when most people don’t believe the price prediction.”
Zhao first entered the bitcoin market in 2013 with 10 million yuan in initial investment. And soon 10 million yuan turned out to be 100 million yuan within a year. However, the overoptimism and misjudgement shortly led him to open heavily leveraged positions. As a result, Zhao found himself 60 million yuan indebted to his friends after losing 9,000 bitcoins in a single day in February 2014. So he advises investors not to “all in” on cryptocurrencies too early.
The early bitcoin investor is also among the outspoken EOS critics now, saying that “ I was a speculative buyer of EOS in its early days, but I have doubts about the team behind EOS now, and EOS CTO Dan Larimer is its biggest ‘Bug’”.
In addition, he believes blockchain ushers in a great revolution, but the revolution is in the early stage, and we must prepare for a “protracted war”.