In case you haven’t noticed, Bitcoin is rallying pretty hard right now. For Brian Kelly of BKCM LLC, these moves are likely to lead to a renewed bull run.
Brian Kelly: BTC Price Driven by Speculation on ETFs, Institutional Money, and Web 3.0
After a pretty lousy start to the year, Bitcoin prices appear to be resuming an upwards trajectory. The price has surged from below $6,000 in late June to over $8,243 at the time of writing.
Crypto investment and trading expert Brian Kelly believes the gains are likely to continue too. The BKCM LLC founder and CEO spoke to CNBC’s “Fast Money” on Monday. During the segment, he touched upon the bear market that some in the space are saying is now over:
“There were a lot of big sellers out there… That appears to be over.”
Kelly went on to claim that the digital asset market was a “reflexive one”. By this he means that when the value begins to climb, more people want to buy Bitcoin and this leads to higher prices along with even greater demand.
According to Kelly, there are three reasons behind the current price moves:
- Bitcoin ETF.
- Greater murmurs from institutional players.
- Web 3.0.
First and possibly most important to the immediate price rally is renewed optimism for a potential Bitcoin ETF. It’s widely believed that the U.S. Securities and Exchange Commission (SEC) will decide if they will approve the most promising of the many proposals they have received. Whilst Kelly doesn’t think that the U.S. financial regulator will green-light the VanEck proposal he does go on to state:
“But that doesn’t stop speculation on that.”
Another important factor playing into Kelly’s belief that an even larger price move is on the horizon is increased institutional interest. He told CNBC:
“I can tell you from the calls that I’m getting, people that looked at [bitcoin] in December and didn’t like the price are coming back now and saying, ‘Alright, this thing is not going away. We need to understand what it is. Where does this asset class fit in to our portfolio?’”
Finally, Kelly believes that cryptocurrencies are an important factor in creating what he and many others call a “Web 3.0”. He refers to the outcome of the current transformative process as “a new internet, an improved internet.”
Cryptocurrencies will be a crucial part of this. They are already allowing the sending of value across global networks. The CEO continued:
“And that is exactly why institutions are starting to get into this. They’re seeing how this fits into a portfolio of web 3.0 stocks.”