Bitcoin continues its volatile projection, rocketing past $11,000 over the weekend – the first time at that level since 2017, the year of BTC’s all-time high of nearly $20,000. Having passed the psychological level of $10,000, analysts say Bitcoin is poised to spark an increasing amount of interest from both retail and institutional investors.
Appearing on CNBC’s Fast Money, crypto bull Brian Kelly, founder and CEO of BKCM, a digital currency investment firm, cautions potential investors about the leading cryptocurrency’s stark highs and dramatic lows.
“You’re actually starting to see real buyers coming in. We talked about it when it was closer to $5,000 or $6,000 and actually even in the $4,000s that what you’re seeing is we have a supply cut that’s coming in 2020. You generally see a rally one year before and one year after. So right on cue, here comes Bitcoin rallying.
The one thing I would say to everybody: we are now up almost 200% for the year, ~170%. Remember this is an extremely risky asset class. Even in 2017 when Bitcoin was up 1000%, you had months where it was down 30-40%, so if you’re buying at the highs, recognize that you’re buying at the highs.”
When asked how a risky asset class could also be characterized as a “safe haven” given the speculations that geopolitical tensions around the world, including the China-US trade war, sanctions on Iran and hyperinflation in Venezuela, among other countries, are fueling capital flight and interest in Bitcoin and cryptocurrencies, Kelly says that it’s all about the investment thesis.
“The investment thesis is that it’s going to be digital gold. And as people need to buy into it, that’s going to be the investment case. It is not a “safe haven”. It is 100% volatility. It’s the most volatile asset class out there. You have to exercise a little bit of caution with it. But there is an investment thesis that this could disrupt gold. And if this disrupts gold, you’re talking about prices that will exceed the last bull market.”
Bitcoin breaking through $11K over the weekend but the #bitcoin baller @BKBrianKelly has a warning for all the FOMO investors out there pic.twitter.com/WN7YVxJxe4
— CNBC's Fast Money (@CNBCFastMoney) June 24, 2019
Follow us on Facebook Join us on Telegram Follow us on Twitter
