After almost eight years of climbing, Bitcoin’s price has finally hit $6,000. While this is certainly cause for celebration, the market is starting to lose its edge. As satoshis continue to flow into the world’s favorite cryptocurrency, the price has been seeing a strong upward trend.
Most people may have already dismissed Bitcoin as a bubble that is about to burst, but it seems the cryptocurrency may be bottoming out and the asset managers are finally catching on. Even though Bitcoin has seen a sharp rise of 18 percent in the past month, the bullish sentiment is starting to change. The price of Bitcoin is close to the $11,000 mark, and many have proved that Bitcoin is not a bubble. But with so many people claiming that Bitcoin is the future, the asset managers seem to have bought all the altcoins and are now starting to assess the market. Including Bitcoin in their portfolios may be a good idea and they might be good for portfolio diversification.
Dash saw a nice daily gain as the price of BTC dropped, but the asset manager sees the price of Bitcoin dropping out of the traditional market and into the digital currency markets. The price of Dash is currently down $9.50 on the day.. Read more about bitcoin dropping now and let us know what you think. Fund manager Brian Kelly says the market is misvaluing bitcoin, and when bitcoin is so mispriced, it’s a sign of a bottom. It sees a succession of all positives reflected in cryptocurrency prices.
Wealth manager Brian Kelly says the market is misvaluing Bitcoin.
Brian Kelly, founder and CEO of digital currency investment firm BKCM LLC, was asked about the price of bitcoin in an interview with CNBC on Tuesday. Kelly manages the BKCM Digital Asset Fund and the REX BKCM Blockchain ETF (NYSE: BKC). He is the author of The Big Bang of Bitcoin – How Alternative Currencies Will Change the World. Previously, he was also a hedge fund manager at Shelter Harbor Capital, which he co-founded. He also co-founded MKM Partners, a brokerage firm for institutional investment managers. For me, bitcoin is all about the network effect and address growth, the asset manager said. One of the most important metrics I look at when managing cryptocurrencies is the address growth rate versus the expected address growth rate of the market. Referring to his diagram, he stated: Address growth is virtually unchanged, but the market expects address growth to decline by 20%. We haven’t seen a difference like that since March 2020. Kelly explained: In general, when bitcoin is so undervalued, it’s a sign that the process is bottoming out….. The market doesn’t see what’s going on underneath the bitcoin fundamentals. He continued: So we’re looking back to March 2020, when we had a huge divergence when bitcoin was at $3,500 and then rose to $60,000. We see the exact same situation where bitcoin seems to be trying to hit bottom. As for his investment in the fund, he said he personally invested in our fund this month because I think it’s a great opportunity. We are tall and getting taller in the foundation. The fund manager then stated: Well, what I would like to see is that bitcoin is very impulsive, so now we need to see more price tracking here to develop that momentum, highlighting : In my opinion, the story hasn’t changed at all. We get institutional acceptance. We get inflation coverage and, in terms of regulation, we get regulatory flexibility. It won’t be banned, it’s just a matter of updating. He repeated: To me, these are all positive elements, and that is reflected in the prices. Kelly was then asked how low the price of bitcoin could go and if $30,000 was the lowest point. I don’t know if $30,000 was the minimum, he admitted. I am deeply convinced that this was the case. But he pointed out that bitcoin has a funny way of making you look like an idiot. He confirmed: If the price dropped to $20,000, I would definitely buy my two diamond hands. Do you agree with Brian Kelly? Let us know your comments in the section below. Photo credit: Shutterstock, Pixabay, Wiki CommonsAfter the last few weeks, many crypto investors are wondering if this correction is the beginning of another bear run. However, as asset manager and writer, I don’t think we’re back in tech bubble territory.. Read more about what is happening to bitcoin and let us know what you think.
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