CNBC Bitcoin bull and CEO of crypto investment firm BKCM, Brian Kelly, says he’s concerned about Bitcoin’s short-term prospects.
On the latest episode of Fast Money, Kelly explains why he’s closely watching the number of new addresses being created on the Bitcoin network.
“What concerns me about Bitcoin right now is we’re not seeing the address growth. The reason why I look at that is because that’s fundamentals. That’s new money coming into it. So we really need to see that address growth.
What’s been going on is Bitcoin’s been trading right with gold for the first time since I started talking about it in 2013. Macro players and other investors are actually using Bitcoin as a currency hedge. So that’s starting to happen but it’s pure speculation. We need to see some buyers come in. Some real buyers.”
Although he’s playing it safe in the near term, Kelley says he thinks Bitcoin will jump higher at some point in the current cycle.
“I do think we have one more leg, and generally in Bitcoin and other commodities, the last leg of the rally is usually a pretty big, powerful trade…
This is the perfect storm for Bitcoin. You have multiple currencies around the world breaking down at the same time that institutional investors are actually embracing this asset class. So the combination of those two things has funneled all the money into Bitcoin. That’s why Bitcoin’s outperformed so much in this environment.”
Crypto analysts are looking to see whether people in Argentina are investing in Bitcoin after the peso plunged 15% against the dollar on Monday. Dovey Wan, founding partner of crypto-asset investment firm Primitive Ventures,