Author: Isabelle Yeo
According to Brian Kelly, a long-time supporter of the Consumer News and Business Channel’s (CNBC) Fast Money column, the rising trend of bitcoin will continue.
At present, the price of Bitcoin has successfully crossed the $8,000 mark, which is the first time Bitcoin has reached the mark since late May. CNBC correspondent, Bob Pisani said in the column that the strong bitcoin market is partially due to the Chicago Board Options Exchange (CBOE) re-application for the Bitcoin Exchange-Traded Fund (ETF). Since the US Securities and Exchange Commission (SEC) usually takes 45 days to make a decision, many expect the final result to be released by August 15, 2018. Some believe that uncertainty has long been reflected in the cryptocurrency price. If the cryptocurrency ETF is approved, it may bring a significant boost to the overall market.
However, Pisani and Kelly believe that the SEC may not approve the first bitcoin ETF this year.
As the founder of BKCM LLC, a digital currency investment company, Brian Kelly has long been optimistic about the prospects of Bitcoin. He believes that corporations will take Bitcoin more seriously, and Bitcoin and its underlying technology blockchain will bring on the era of “Web 3.0”.
When describing the Web 3.0 revolution, he said, “What we are experiencing now is the evolution from the current ‘database’ to ‘data bank’,” He continued, “Data on the Internet is valuable. Web 3.0 is a new kind of Internet, an improved Internet, and its data can be monetised. How can we send something of value through an open network like the Internet? Of course, the use of cryptocurrencies, which is the reason corporations have begun to get involved in Bitcoin.”
He added that Google had achieved an enormous market gain by selling data.
Kelly believes that higher prices will also attract more investors, and investors who leave during the bear market would return to the market.
He said,“The higher the price, the more valuable it becomes. The truth applies to gold, forex and Bitcoin as well.”
In May 2018, Kelly said that the largest financial institutions on Wall Street, including the New York Stock Exchange (NYSE) and Goldman Sachs, began to adopt cryptocurrency, which will push up the price of Bitcoin in the foreseeable future. However, this forecast has not been realised.
Five months ago, Kelly said that Bitcoin faced some ‘resistance’, and rich investors sold their bitcoins.
“It seems to be over, but sometimes the market needs time to adjust.”, said Kelly
At the same time, neither Kelly nor Pisani believes that the SEC will approve the CBOE Bitcoin ETF application. Pisani said he had interviewed SEC officials, who said they are adopting a “cooling measures” to cryptocurrencies. In fact, it has been reported that the SEC has delayed another bitcoin ETF application submitted by the US fund company-Direxion-until September. Although the application provided by CBOE has not been affected, for the time being, the possibility of delay processing still exists.
Pisani said he expects the SEC will not directly reject the request but will extend the decision-making time. The SEC will cite its previous concerns about theft of the wallet, theft of the exchange, and potential market manipulations. There are still some issues in the market that need to be resolved. Such a decision will result in very little market friction.
Pisani said that on the positive side, Coinbase has just set up a political action committee, which will effectively promote the policy advancement of the cryptocurrency sector.
Photo Credits: BKCM, LLC,Google Image