Brian Kelly, the BKCM boss, remains bullish on BTC in spite of the steady decline that the cryptocurrency has experienced this year. Kelly spoke to CNBC yesterday and declared that Bitcoin is not dead yet. Bitcoin has dipped by over 65% since the year started.
Sentiment Approaching New Lows
Kelly believes that the sentiment in BTC is approaching new lows, but it won’t last long. He also refuted the idea that the digital currency was dead and highlighted different factors that have caused the dip in prices since the year started. The BKCM boss also identified crypto exchange hacks, and tax sell-offs as some reasons for the negative sentiment retail traders now hold.
Kelly stated that despite the price decline of BTC, the currency is still quite valuable as compared to a year ago. Last year, June precisely, BTC was traded at $2,500, and this is still far from the lows experienced this year.
No more selloffs from Bitcoin Whale after Mt. Gox case
Kelly referenced the Mt. Gox bankruptcy case where the Tokyo district court ruled that a company must halt criminal proceedings in a bankruptcy case and move to civil rehabilitation. This means that what is left of the BTC will be divided among the creditors.
This also implies that Nobuaki Kobayashi, the trustee of Mt. Gox can no longer offload BTC. The Tokyo bitcoin whale was accused of contributing to BTC price decline due to its massive selloffs. The civil rehab process will start next year. So traders can be assured that the Bitcoin Whale is not striking shortly.
Bitcoin futures is not to blame for the decline
Kelly argued that the emergence of futures did not contribute to the price decline. He also stated that the futures trading had not reached a significant level that can affect market price.
Will bitcoin rebound?
TradingAnalysis founder, Todd Gordon predicts that BTC will bounce back next year.