Brian Kelly is back with his latest views on Bitcoin’s current fortunes and he is upbeat and bullish on where the market is heading.
His last words on the subject over a week back were made in the wake of investors holding their breath for the SEC’s ETF announcements which saw another dip for Bitcoin and other cryptocurrencies. He suggested then that the ETF waiting list at the SEC was driving market uncertainty. He rejected the notion that ETF would be approved by the SEC this year, suggesting that he wasn’t actually optimistic on them being approved in 2018, a view that has now become widely held.
In his latest appearance, he suggested that the “wild ride” Bitcoin is currently on needs to be seen in the context of a before and after scenario regarding CBoE-based Bitcoin futures. He said that Bitcoin frequently doesn’t respond well pre-expiry date, but then experiences a 10% jump following futures expiry.
He cited the expiry of April futures as a case in point which saw a Bitcoin leap of 20% of just six days. Asked if other cryptocurrencies would follow Bitcoin on its current “wild ride” of highs and lows, he revealed his thoughts that altcoins tend to follow its lead:
“They (altcoins) are still quite correlated (with Bitcoin). Over the last 60 days or so, Bitcoin has really been the leader — a lot of that had to do with the speculation about an ETF. But what you did see today is stuff like Ethereum almost 10% off yesterday’s lows, stuff like Stellar Lumens — still holding up quite well. So yes, if you get a 10 or 15 per cent run on Bitcoin on a short squeeze, it should bring everything else back up.”
There are some optimists on the other side of the Atlantic who see Bitcoin’s falling price in 2018 as a reflection of the market regulating itself. Phillip Nunn, CEO of investment firm Wealth Chain Capital, suggests than Bitcoin and larger coins will be the survivors after a market realignment: He said:
“The Bitcoin boom seems to be over for now, it’s currently trading at USD 6,472 (time of press) and I personally welcome it. The market is telling us something loud and clear, we do not need 1,000 different altcoins and the crash will most certainly get rid of these. A consolidation of quality projects within crypto will bring about the start of true Bitcoin dominance. I firmly believe the market will sustain itself, now is the time for investment, while prices fall.”
Ted Rogers, the chairman of vault operator Xapo, agrees, also suggesting that the current market offers an excellent opportunity to purchase the flagship digital currency.
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