Brian Kelly: “strong fundamental factors behind the growth of Bitcoin”
The founder and head of the BKCM LLC cryptocurrency hedge fund Brian Kelly (Brian Kelly) said that behind the growth of Bitcoin are strong fundamental factors.
In the program "Fast Money" on CNBC Kelly explained why this month the price of the first cryptocurrency rose to the level of November last year. In addition, according to the founder of BKCM LLC, there is a high probability that the $ 3,200 mark will become the "bottom" of the market.
Kelly spoke about strengthening the fundamental factors - for example, the number of active Bitcoin wallets in January increased by 26%, and the number of transactions in the network reached the level of the end of 2017. In addition, Fidelity is preparing to launch its platform for institutional clients, while CME reported an increase in the volume of trade in Bitcoin futures.
"So, you are starting to see institutional investors come in here with a good fundamental tailwind, and that's got Bitcoin back in the saddle again. Without question, this next cycle... You're talking a two-year cycle. So, generally speaking, in 2020, the supply of Bitcoin is going to get cut in half [Kelly is referring to the halving of Bitcoin mining rewards]. The cycle for Bitcoin is usually from about a year before to a year after. So, over this two-year period, you will likely get this big upswing, particularly if the institutions come in, and I think we surpass all-time highs,"Kelly said.
Recall that after the growth of the first cryptocurrency in early April, Kelly said that the next target for Bitcoin is $ 6,000, and in February, he expressed the opinion that Bitcoin undervalued by 50%.
This is what he said about Bitcoin's fair value:
"So, if you were to take a combination of active addresses and activity per user, that's explained over 90% of Bitcoin since 2013. The fair value for Bitcoin, right now, is $14,000."