Brian Kelly is the manager of BKCM, a cryptocurrency hedge fund. Kelly believes now is the best time to invest in bitcoin, even after the big correction that hit the global cryptocurrency market recently.
Bitcoin reached the price of 20,000 dollars in December last year and then the price fell by almost 50% to around 11,000 dollars. Other cryptocurrencies on the global market also followed bitcoin and their price was corrected as well. Most of the most popular cryptocurrencies, including Ripple and Bitcoin Cash, with the exception of Ethereum, went down by more than 50%.
Kelly characterized the drop of the price of bitcoin as a change of market trends in which the traders are migrating from the Asian market to the European and American cryptocurrency markets. With the launch of the bitcoin futures and the introduction of strict regulations for the exchange of cryptocurrencies, more and more institutional investors started investing on the cryptocurrency market.
Kelly said: “Now everyone is saying that it’s over, this is it, bitcoin is dead, for the thousandth time. Now it is time to start buying bitcoin. This is not the ends of bitcoin.”
Despite the large growth of the cryptocurrency market last year, bitcoin remains as the only cryptocurrency backed up by institutional investors, financial institutions and strict regulations.
The alternative coins (altcoins) have become popular in the last six months, but new institutional investors entering the cryptocurrency market will first invest in bitcoin, before they plan on diversifying their assets by buying altcoins.
Kelly pointed out the fact that the cryptocurrency market still has a lot of space for growth and that the majority of the cryptocurrency investors are highly optimistic and enthusiastic. However, he said the investors need to be prepared for frequent corrections of 20 to 30 percent, because large corrections are happening often on the cryptocurrency market: “These things can move from 20 to 30 percent on a daily basis.”