Last week saw Bitcoin and the overall cryptocurrency market undergoing a massive correction. On Sunday, June 24, Bitcoin touched its 2018 low of $5826.41 with its overall market cap falling momentarily below $100 billion, according to the data on CoinMarketCap. However, this correction has been not just limited to Bitcoin as the overall cryptocurrency market cap has corrected by more than $50 billion.
The Sunday’s fall in the Bitcoin price marked a correction of more than 70% since its high of $20000 which the cryptocurrency touched during the mid-December 2017. In spite of this heavy downfall, CNBC analyst Brian Kelly says that this is not the end for Bitcoin.
Brian Kelly, the founder and CEO of digital currency, focused firm BKCM LLC, said that Bitcoin is undoubtedly “not dead” and that “this is not the funeral for bitcoin whatsoever,” further rightfully arguing “let’s put this in perspective. Do you know where we were a year ago? $2,500.”
However, Kelly admitted that the drop is undoubtedly “painful” and unusual in a way. He also said that multiple reasons have spiraled up this selling like tax selloffs, several exchange hacks, $10 billion funding in ICOs and other different reasons. He said that digital currencies are currently in the bear market adding:
“We don’t know where they [bear markets] end. It doesn’t mean that bitcoin can’t go lower. But this is by no means the funeral for bitcoin.”
While speaking in an optimistic tone, Kelly said that this fall could actually prove to be a good thing for the digital currency. Kelly stated:
“When we start to declare a funeral and things get really horrible, the sentiment is approaching the lows. So hopefully, we’ll use that funeral bug to say, ‘Hey. You know what? That was near the lows.”
While commenting on the latest development of the Japanese FSA asking bitFlyer exchange to take up new registrations, Kelly said:
“Short-run it’s going to be a little tough, because they’re stopping new accounts from coming in.”
However, Kelly supported this move for the long-term saying:
“They’re cleaning up the system. They’re making sure it’s more robust. Making sure it’s better for people.”
Brian Kelly is not the only person who has been positive despite the falling market. Cardano co-founder Charles Hoskinson, who is also the previous co-founder of Ethereum said that in the future, Wall Street will be bringing “tens of thousands of dollars” to the cryptocurrency market. On his official Twitter account, Hoskinson wrote:
What's often missed by the cryptocurrency is going to die broken record media is that after the next wave of regulation, wall street is showing up to the party with all their locked up capital. That's tens of trillions of dollars entering the space eventually. Future is bright
— Charles Hoskinson (@IOHK_Charles) June 21, 2018
Moreover, in the last few months, there have been multiple reports of increased activity for cryptocurrency among the institutional players. Big names from the Wall Street like popular hedge-fund manager Mike Novogratz has stepped up measures to launch his own cryptocurrency merchant bank by this year-end. Novogratz is said to be investing 10% of his own personal wealth in this project.
After a heavy correction last week, Bitcoin is now showing some marginal signs of recovery today as the world’s largest cryptocurrency has posted a 5% recovery at this moment and is currently trading at $6173, as per the data on CoinMarketCap. The overall cryptocurrency market valuations have also just moved over $251 billion.