In a recent interview, the founder and CEO of BKCM LLC VC company Brian Kelly (who is also a crypto trader for CNBC) expressed his concerns regarding the short-term prospects of Bitcoin.
He stated that the growth of new Bitcoin addresses has stopped.
Investors are starting to use BTC as a currency hedge
Kelly explained his concerns, saying that new BTC wallets ensure a cash flow into the market, so it is necessary, he says, to have the number of Bitcoin addresses increasing.
He also stated that investors are indeed using Bitcoin to hedge their risks against the fall of fiat currencies, are starting to do that. However, this is more of speculation so far. The market needs actual buyers.
That’s pure speculation. We need to see some buyers coming. Some real buyers.
Institutional investors are stepping in
Still, the head of BKCM is positive about the future of Bitcoin. However, he recommends doing careful BTC trades on short-term periods.
Kelly pointed out that institutional investors are gradually embracing the new asset class, while the quotes of many altcoins are going down. All of this is influencing the BTC price positively.
Recently, many experts started considering Bitcoin to be a currency hedge that investors are using to protect their assets from risks. Among them is the co-founder of Morgan Creek Digital Anthony Pompliano.
In one of his recent interviews with Kevin O’Leary, he stated that investors around the world are starting to go for Bitcoin in times when traditional financial markets go unstable.
One of the most recent cases, when Bitcoin was claimed to be used as a hedge, was the start of the trade war between the US and China.
Crypto community’s mistrust to Kelly
In the comment thread, mistrust to Kelly’s judgments about Bitcoin are clearly seen, though Many crypto investors consider him far from being a real Bitcoin expert.
Current Bitcoin market stance
At press time, Bitcoin price is holding at $11.280, showing a slight decrease of under 1 percent.