Crypto hedge fund manager explains why this bitcoin comeback could be for real
July 25 2018 - 4:29AM
ADVFN Crypto NewsWire
The bitcoin rally is underway and crypto trader
Brian Kelly said the digital coin will likely continue
to appreciate in value.
On Tuesday, bitcoin jumped above $8,000 and is now
up 20 percent in one week.
While bitcoin is nowhere near its December highs of around
$19,500, the cryptocurrency has steadily increased in the last few
weeks alone. Bitcoin fell below $6,000 in June and
left market watchers wondering if the coin had hit bottom.
"There were a lot of big sellers out there," Kelly, founder and
CEO of BKCM LLC, an investment firm focused on digital currencies,
said Monday on CNBC's "Fast Money." Those big sell-offs
included sales ahead of tax season and
the Mt.Gox hack.
"That appears to be over," Kelly said, calling the cryptomarket
"a very reflexive one," meaning, the more valuable it becomes, the
more investors want it.
Kelly explains a few other reasons why bitcoin is on a positive
track.
Bitcoin ETF
In June, money management firm VanEck tried for a third time to
form a bitcoin exchange fund. The firm
is currently awaiting approval from the U.S.
Security and Exchange Commission. If the ETF is approved,
crypto traders are optimistic that it will send bitcoin's price
higher. Kelly said the chances of approval are slim.
"But that doesn't stop speculation on that," Kelly said, adding
that the increased attention is helping bolster bitcoin's
value.
Other recent positive news includes Coinbase's potential $20
billion hedge fun for its custody service.
Institutional Interest
Institutions and large banks are starting to get serious about
cryptocurrency, Kelly said.
"I can tell you from the calls that I'm getting, people that
looked at [bitcoin] in December and didn't like the price are
coming back now and saying, 'Alright, this thing is not going away.
We need to understand what it is. Where does this asset class fit
in to our portfolio?'" Kelly said.
"Web 3.0"
The internet is evolving in what Kelly said is "Web 3.0."
"We’re moving from a database to a databank," he said. "What
does that mean? The data in the internet is valuable."
"Web 3.0 is the new internet, an improved internet," Kelly
said.
And how do you send valuable assets across an open network like
the internet?
"With a cryptocurrency," Kelly said. "And that is exactly why
institutions are starting to get into this. They’re seeing how this
fits into a portfolio of web 3.0 stocks."
Kellie Ell
Ripple (COIN:XRPGBP)
Historical Stock Chart
From Apr 2024 to May 2024
Ripple (COIN:XRPGBP)
Historical Stock Chart
From May 2023 to May 2024
Real-Time news about Ripple (Cryptocurrency): 0 recent articles
More Ripple News Articles