Brian Kelly, founder and CEO of BKCM LLC, an investment firm focused on digital currencies, said in the interview to CNBC that despite the protracted bearish trend, there is no "funeral for bitcoin whatsoever".
He explained his position by outlining several factors. First, noting that market sentiment has potentially reached the lowest value for the near future. Kelly says that in the end, a change in sentiment will lead to an increase in price.
Despite the declining price, bitcoin’s price is still higher than the same time last year. In December 2017, the value of the cryptocurrency has risen to around $20,000. However, in November same year, the price of BTC was at $2,500, which is very far from the lowest indicators that were seen this year.
As the second factor, Kelly noted the activities of the Japanese regulators, who will introduce new rules to improve security measures surrounding local crypto instruments. He noted that in the short term it will be tough for the exchanges to reorganizing their activities, but they are likely to become more reliable in the long term.
Finally, the trader recalled the Mt. Gox, which began the procedure of civil reconstruction after the break-in in 2013. The hacking of the exchange was considered the largest in the history of cryptocurrency, until this January’s attack where hackers stole $534 million from the crypto exchange Coincheck.
At the time of writing, the cost of bitcoin is at around $6,300 according to CoinMarketCap. On Friday, June 22 Bitcoin price went down below $6000 mark and rebounded back through the psychological cap only towards Monday. During the weekend, bitcoin has set this year’s new price low record.
According to 99Bitcoins, this year bitcoin has "died" 319 times. in comparison, in 2017 the main cryptocurrency has "died" 62 times.
By Nadya Astam