On one of the latest airings of CNBC’s Fast Money segment, host Melissa Lee began with a look back on Bitcoin, the top cryptocurrency by market cap, holding a faux “funeral” for the crypto that started it all.
Before Lee could continue, she was interrupted by major cryptocurrency supporter Brian Kelly, who gives his three reasons as to why Bitcoin isn’t dead despite reaching lower lows in recent days. Bitcoin has dropped more than 65% in 2018, causing many critics to believe that it spells the end for the cryptocurrency that reached an all-time high price of $20,000 in December 2017.
First, the CNBC financial analyst says that because the overall general cryptocurrency market sentiment is “approaching lows,” it implies a trend reversal is near. An oft-used contrarian quote from Baron Rothschild can be used to explain what Kelly means here:
"The time to buy is when there's blood in the streets.”
Kelly pointed out that despite the massive decline, Bitcoin is still more than double the value where it was a year ago.
Secondly, Kelly pointed out the recent news of Japan’s Financial Services Agency issuing business improvement orders to 6 exchanges in the region. Kelly noted that the improvements will add much needed infrastructure and cyber security that will only make for a better investor experience in the market.
Lastly, Kelly discussed the potential implications of the Mt. Gox case moving into civil rehabilitation and how it would bring some much needed relief to the market. Kelly notes that the Mt. Gox coins have created a cloud of fear that has been hanging over investors, who often blame Mt. Gox estate custodian Nobuaki Kobayashi for fueling the bear market Bitcoin is currently in. The case has moved out of bankruptcy court, which means that original Mt. Gox creditors may receive their reimbursements in crypto – but not until February 2019 the earliest, which Kelly believes will relieve some investor unrest.
"And then finally there was news today that Mt. Gox is going into rehab, rehabilitation. And they’re going to distribute the rest of the $1 billion worth of bitcoin. But here’s what’s great about that: they’re not going to distribute it until at least Q1 of 2019. Everybody thinks all of a sudden there’s going to be a wave of selling — not happening now.”
Kelly concluded: “This is by no means the funeral for Bitcoin.”