Bitcoin enthusiast Brian Kelly believed cryptocurrency to be “not dead” despite Bitcoin falling on an amount of below $6,000 on Friday.
“This is not the funeral for bitcoin whatsoever,” said Brian Kelly, founder, and CEO of BKCM LLC on a forum last Friday.
“Let’s put this in perspective, do you know where we were a year ago? $2,500,” he also added.
Kelly explained that various combinations of things which include multiple exchange hacks, tax sell-offs and $10 billion funding initial coin offerings (ICOs) have caused a decrease in its price.
But investors are still not so sure about it, as the coin fell by under $6,000 last February, it’s highs for December 2017 was around $19,500 which follows an evident decrease by more than 60 percent.
Kelly also mentioned that even though it was “painful”, the drop was still not unusual.
For he believes that cryptocurrencies are in a bear market right now.
“And bear markets, we don’t know where they end,” Kelly said.
“It doesn’t mean that bitcoin can’t go lower. But this is by no means the funeral for bitcoin,” he also added.
Surprisingly, the lows could also be a good sign for bitcoin, Kelly added.
“When we start to declare a funeral and things get really horrible, the sentiment is approaching the lows,” he said. “So hopefully, we’ll use that funeral bug to say, ‘Hey. You know what? That was near the lows.'”
Even more exchange hacks that include the recent attack on the Bithumb by South Korea which forced even the regulators to make a change.
But the Japanese financial regulator ordered on Friday, to have a number of exchanges for cryptocurrency to improve their living business condition so as to prevent future crimes of money laundering.
“Short run it’s going to be a little tough because they’re stopping new accounts from coming in,” Kelly said as of Japan’s Financial Services Agency led bitFlyer, which is China’s largest crypto exchange.
Bitcoin’s Friday performance
But Kelly believes that this is not a long-term bad idea.
“They’re cleaning up the system. They’re making sure it’s more robust. Making sure it’s better for people,” he said.
Additionally, the bitcoin exchange of Japan, Mt. Gox, which was shut down in the year 2014 after a reported breach in its security stated that they may pay back the investors by as early as next year. Kelly said that it will likely happen by 2019 of the first quarter.
“Everyone thinks all of the sudden there’s going to be a wave of selling.” But he said it won’t be happening now.
Instead, he stated that the traders must think of long-term opportunities about cryptocurrencies and less on investing in ICOs.