Bull Trader Says Bitcoin Isn’t Dead Amid Recent Decline
On Friday, Bitcoin had a $6000 decline but bull trader Brian Kelly told CNBC that it isn’t dead yet.
Brian Kelly is the CEO and founder of BKCM LLC which is an investment firm on digital cryptocurrencies.
“This is not the funeral for bitcoin whatsoever,” Kelly said.
Kelly said to put this in a perspective and asked where we were a year ago.
According to him, the cause of the coin’s decline in price was the combination of things. These are tax selloffs, multiple exchange hacks and $10 billion funding initial coin offerings (ICOs).
Despite these, the investors might be uncertain. In February, the coin went to a $6000 decrease. However, the bitcoin bounced back with a $19,500 high in December last year.
Kelly said that even though the decrease is painful, it’s not rare. He added that the cryptocurrencies are in the bear market nowadays.
“And bear markets, we don’t know where they end. It doesn’t mean that bitcoin can’t go lower. But this is by no means the funeral for bitcoin,” Kelly said.
He said that the bitcoin’s slumps might be actually a good thing.
“When we start to declare a funeral and things get really horrible, the sentiment is approaching the lows. So hopefully, we’ll use that funeral bug to say, ‘Hey. You know what? That was near the lows,” Kelly said.
Further, regulators set to make changes due to the recent multiple exchanges hacks including the hack of South Korea’s Bithumb.
To avert future laundering of money, a Japanese financial regulator demanded several exchanges in cryptocurrency. This is also to expand business conditions.
Bitflyer is Japan’s largest crypto exchange.
“Short run it’s going to be a little tough because they’re stopping new accounts from coming in,” Kelly said of Japan’s Financial Services Agency led bitFlyer.
However, this is not a bad thing in a long-term status, as per Kelly.
“They’re cleaning up the system. They’re making sure it’s more robust. Making sure it’s better for people,” he said.
Whilst Upset Confidence of Investors, Bitcoin Records New Drop This Year
On Sunday, Bitcoin recorded a $5787 drop which is the cryptocurrency’s lowest price this year.
According to the price index of Coindesk, Bitcoin had been fixed at $5947 on February 6 amid of a sharp slope.
The existing bear trend, market manipulation allegations, battered sentiments of investors, and global regulatory analysis may prove more persistent. These are despite a bounce that shadowed the recent low.
Since December 2017, there was a mark of more than 70% decrease in Bitcoin’s value. This happened when the cryptocurrency’s value stopped at a $20,000 short.
