Cryptocurrency expert Brian Kelly sees Bitcoin (Bitcoin) rebounding from recent losses and possibly bouncing back to early year highs in the second quarter of 2018.
According to him, the cryptocurrency usually performs better in the second quarter, and expects the current year to be no exception.
"There will be a significant rally here if seasonality brings tail winds, " the founder of Brian Kelly Capital told CNBC.
Kelly said the reasons for a bounce are twofold: first, the tax-selling season that pressured prices at the end of the first quarter is now winding down, and second, regulatory fears that also squeezed cryptocurrencies since the beginning of the year are beginning to fade.
"We've gone to the extreme of the regulation which is South Korea thinking they're going to ban it, the U.S. talking about everything being a security, to walking it back," Kelly said. "You're seeing a shift again in that type of thing. I think most of that's behind us."
The expert believes regulation is not a bad thing and could even benefit the cryptocurrency markets.
“It doesn't kill any other market as long as we do it correctly and we don't stifle innovation. Regulation might actually increase adoption."
Bitcoin has entered the second quarter on a positive note, gaining about $400 on Tuesday alone. The cryptocurrency price has experienced a 7,14% rise over the past 24 hours to reach $7,500, according to CoinMarketCap.com.
By Siranush Ghazanchyan