There are many people who are rallying in support of Bitcoin, and Brian Kelly is one of them. Kelly is a crypto trader and the founder of BKCM LLC, who is also the CEO. Right now, he has told the public that he believes that Bitcoin will continue to thrive, assuming that the worst is over.
On July 24th, Bitcoin managed to reach a new height of over $8,000, and it has reached a 20% increase within the last week. The biggest worry for consumers was easily the drop down below $6,000 in June, where investors started believing that the coin may be reaching bottom. Even though this is far below where Bitcoin was by the end of last year ($19,500), it still has been increasing for almost a month.
Kelly understand that “there were a lot of big sellers out there.” Some of the biggest sell-offs included the Mt. Gox case that involved alleged embezzlement, and the big tax bills that investors had to cover. According to Kelly, he said, “That appears to be over.” He believes that the crypto market “a very reflexive one,” implying that the rise in value is directly correlated with investors that want to get involved.
Furthermore, Kelly lists three other main reasons that Bitcoin is on the way up.
The Bitcoin ETF
VanEck has been trying for quite some time to develop a Bitcoin exchange fund and reached the third attempt in June. Right now, they are awaiting approval from the SEC, but it has not been postponed like others have, which is a good sign. If it reaches the approval stage, then traders believe that Bitcoin’s price will rise higher.
Despite these indications, Kelly does not think that there is a chance of approval, but “that doesn’t stop speculation on that.”
Interest From Institutions
There are many banks and other financial institutions that have grown interested in Bitcoin and the rest of the crypto world. Kelly has 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 calls the evolving of the internet recently “Web 3.0,” due to the way the economy is moving from a “database to a databank.” He continued, saying, “What does that mean? The data in the internet is valuable.” He also added, “Web 3.0 is the new internet, an improved internet.”
In order to send valuable assets with the internet, the easiest way is with cryptocurrency. Kelly believes that this is why institutions are getting involved in the first place. He said, “They’re seeing how this fits into a portfolio of web 3.0 stocks.”