Bitcoin [BTC], the largest cryptocurrency by market cap, continues to be in the news after the cryptocurrency’s unanticipated double-digit rise earlier this month. The cryptocurrency also seemed to be sustaining its price post-surge quite well. This, in turn, resulted in several cryptocurrency market analysts opining on what they think will happen next.
On one hand, Tone Vays, a Bitcoin trader, presented two outcomes, first, with a bottom line of $3000 and a high point of $8000, and second, with a high point of $8000 or $10,000 without a drop. On the other hand, Brian Kelly, CEO of BKCM, affirmed that this was indeed Bitcoin’s resurgence, stating that the December 2017 lows were “probably” the lows for this cycle, in an interview with CNBC.
This was followed by Kelly explaining why he thinks Bitcoin has “probably” bottomed, stating that there are a “couple of things” going on. He listed the increasing number of active addresses, transaction levels, and network activities as some of the few reasons.
“[…] active addresses, that’s one of the big metrics I look at, that’s up 26% from the January lows, […] transaction levels those are back to 2017 levels, so there’s a lot of network activity. Then, you look at who’s buying this you’re seeing people like Fidelity still rolling out their institutional platform […]”
He also spoke about CME Bitcoin Futures, which recently made headlines after it recorded its all-time high. He said,
“[…] then as a proxy look at the CME Bitcoin futures, the large open interest holders well so these are big institutions those are at all-time highs […] so you’re starting to see institutional investors come in here with a good fundamental tailwind and that’s got Bitcoin back and back in the saddle again”
Kelly further stated that Bitcoin will see record highs “without question,” adding that it’s going to be a two-year cycle. He explained that since Bitcoin’s supply is going to be cut in half in 2020, the cycle for the currency is usually a year prior, to a year after. He stated that this two-year period would likely “get this big upswing, especially if more institutional investors enter the market. Kelly also claimed that Bitcoin will surpass its all-time high mark.