Last Updated: 6 June 2021
According to Fund Manages Brian Kelly, bitcoin is being mispriced by the market, and when this happens, it means that the price of bitcoin is bottoming out. The current price of bitcoin has a lot of positive things.
About Brian Kelly
Brian Kelly is the founder and the CEO of digital currency investment firm BKCM LLC. Formerly, he was a hedge fund manager at Shelter Harbor Capital, where he was also the co-founder. Moreover, at MKM Partners, a brokerage for institutional investment managers, he was the co-founder of it. Brain Kelly is also the author of “The Bitcoin Big Bang.- How Alternative Currencies are About to Change the World”
What Did He Say About the Cryptocurrency Prices?
In an interview with CNBC on Thursday, Brain Kelly was asked about his thoughts on the future of bitcoin prices. He says, according to him, the only things that matter for the growth of bitcoin are network effect and address growth. One of the essential things for managing cryptocurrency is the actual pace of address growth and the expectation of the market on address growth. According to his chart, he said address growth is flat, but the market provides misleading information, which indicated that cryptocurrency is facing a decline of 20% in its growth. This difference is enormous since March 2020.
When the market misprices bitcoin, it is the indication that the price is bottoming out. This situation is the same as in March where Bitcoin dropped down from $64000 to $35000, and today’s market analysis indicates the same type of decline now. He also revealed that he is still adding to his funding investment as he sees it as an opportunity to make their investment longer. He says that the price of bitcoin is driven by momentum and this situation also indicates that the momentum is with bitcoin and can go high again.
He also added that the current market situation of cryptocurrency didn’t change anything. It is not going to be banned or disappeared. It will rise in its popularity and soon be in the field again. He considers all these things positive.
There were speculations that the price of bitcoin will go down to $30,000, and Brian Kelly was asked if this is going to happen or not. He replied that he doesn’t even know if the $30k mark is the lowest for bitcoin. He says if the value of Bitcoin has to go down at $20,000, he will be buying it with both of his ‘diamond’ hands. Brain Kelly isn’t the only one to say this. Other analysts are seeing this phase of the market as a buying opportunity. Many people are even speculating that the value of bitcoin will touch the $100,000 mark in the coming months. Even though Elon Musk’s company Tesla has stopped taking Bitcoin payments, the company revealed that they are still holding onto its bitcoin holdings.