Brian Kelly on Bitcoin’s Boom and Bust Cycles: BTC Could Go Under $3,000 Despite Being Undervalued
Bitcoin (BTC), the most popular digital currency could still fall under $3,000 in the near future, according to Brian Kelly, a CNBC crypto contributor. A Bitcoin under $3,000 is highly likely due to historic market cycles.
During the last few weeks, the Bitcoin sentiment has turned positive after Bitcoin increased a few hundred dollars growing up to $3,650 from $3,400. Several experts and analysts were thinking that Bitcoin could start to grow above $4,000 and start recovering part of the price lost during the last months.
Brian Kelly Commented About It:
“I look at the price and I say that we’ve seen three or four of these kinds of boom-and.bust cycles in Bitcoin. If you look at the most recent two or so, we’re following roughly the same path as we have had… We might have another dip lower – it wouldn’t surprise me at all.”
Kelly is also the chief executive of the blockchain investment group BKCM. He mentioned that Bitcoin could eventually reach $1,500. The Crypto Dog, a popular crypto expert in Twitter, said that he would not be shocked if Bitcoin drops down to $1,800 before starting to grow once again. He said something similar about Ethereum (ETH) falling down to $50.
I don't know for any certainty we'll see those prices, nor do I mind if we reach them or not.
If you're in $BTC for the long haul, DCA. If you're learning to trade, just survive. Keep your risk low, gains will be easier someday.
— The Crypto Dog📈 (@TheCryptoDog) February 5, 2019
However, Kelly said that the bear market is currently in its last moment. He said that there have been several crypto-related firms liquidating their assets in order to survive the bear market that started back at the beginning of 2018. Furthermore, he stated that according to BKCM’s proprietary valuation model, Bitcoin is 50% undervalued. Thomas Lee, the co-founder of Fundstrat Global, said that he sees Bitcoin at around $25,000. Lee has always been bullish about the potential of the most popular virtual currency in the market.
Kelly has also talked about the approval of a Bitcoin exchange-traded fund (ETF) in 2019. He said that there is “no shot” for it to make it through the U.S. Securities and Exchange Commission’s (SEC) regulatory hoop. It might be difficult for it to receive the approval of the regulatory agency in the United States. It is possible for the SEC to approve it in 2020.
The SEC is also trying to play a more active role in the cryptocurrency market. The agency has been trying to regulate several companies that offered tokens to the market or were simply scams.
At the time of writing this article, Bitcoin is being traded around $3,645 and it has a market capitalization of $63.94 billion.