According to Brian Kelly, Founder & CEO of BKCM LLC and CNBC Fast Money Trader, “this Bitcoin rally is real.” He lays out three reasons for his bullish sentiment; Bitcoin ETF speculation, institutions are serious about Bitcoin prices compared to December 2017, and web 3.0 (“new and improved internet”).
Bob Pisani, CNBC reporter, begins the show talking about how Bitcoin is up about 37% since the end of June when Bitcoin bottomed out around $5,700 and how the turn in market sentiment was probably because the CBOE filed for a Bitcoin ETF with the SEC.
The proposal was pretty much the same ETF proposed in December 2017 but with insurance for investors and a much higher entry point, one share consists of 25 BTC. The ETF was proposed on June 26, and roughly 45 days after that, about August 15, we might get a decision. The more likely outcome will be that the SEC postpones their decision into September or even later.
Brian Kelly then takes the stage and talks about his three reasons for the bulls to continue running.
His first reason, is that even though for 2018 he believes there is a “relatively low” chance an ETF gets approved, the speculation of a decision will continue to push the market up.
His second reason, is that institutions are getting serious about Bitcoin. They didn’t like the prices of it in December 2017, around $20,000, but prices are much lower now. In addition, Coinbase has secured a $20 billion hedge fund for their custody service.
He then explains his third reason, web 3.0, ”a new and improved internet,” and that companies are trying to see how this fits into a portfolio of web 3.0 stocks.
“How do you send something of value across the open network like the internet? With a cryptocurrency.” -Brian Kelly
Another panelist comments saying that he feels, Bitcoin is higher because “people feel more comfortable buying at $7,800 than $6,000 and they will probably be more comfortable buying at $10,000.”
Brian Kelly then explains that Bitcoin is similar to gold trading.
“The more valuable it becomes, the more valuable it becomes. Very true for Bitcoin, for gold, and for other currencies.” -Brian Kelly
He goes on to explain that five months ago there were a few major reasons holding the market back, the Mt.Gox trustee selling, tax season, and lots of other large investors selling. Now that sentiment seems to be over he is bullish on the upcoming months.
“I talked about it when we were at $5,800, I was shocked that people weren’t getting [buying] it, and sometimes it just takes the market a little time to catch up and here we are and I don’t think it’s done.”
Do you think we are at the beginning stages of a bull market? Leave a comment with your reasoning below!