Brian Kelly thinks bitcoin is approaching a generational low

Brian Kelly thinks bitcoin is approaching a generational low

As the crypto winter becomes increasingly difficult for the various players in the industry, they are set to find the bottom of the market that will trigger a reversal of the bitcoin trend. Hedge fund manager Brian Kelly went through this exercise last Thursday on CNBC during the show Fast Money. In particular, he claimed that the main cryptocurrency in the market was approaching a low generation. Details in the following.

Tank conditioned by three main factors

When asked how long it will eventually take for bitcoin to bottom out, the fund manager would prefer to first look at the situation that will trigger it. Brian Kelly in particular claimed that a combination of three factors is a catalyst for the advent of the bitcoin trough. These in particular include the Bitcoin’s Fall to $ 10,000, Rising Inflation Expectations and Central Bank Policy Error of the world. He then claimed that we are approaching a low generation.

I think if you get those three combinations, a final cleaner of all bitcoin leverage to $ 10,000, $ 15,000, somewhere around that and inflation expectations picking up, which I think will happen in the next quarter, and we already know that all central banks. A policy mistake has already been made and it is likely to continue to do more. This is the perfect case for bitcoin to bottom out. So now you have it. All we have to do is wait “, he confirmed.

Some companies may face the same fate as Lehman Brothers

Brian Kelly also spoke about the effects of the ongoing bear market and the impact it will have on companies in the cryptosphere. In particular, he expects some of them to go bankrupt like the investment bank Lehman Brothers during the 2008 crisis. His comments certainly reflect the recent liquidity problems facing companies such as Celsius Network, Three Arrows Capital, BlockFi and Voyager Digital.

“We are probably months away from the ‘Lehman moment’, which is a sort of final rush. A large company goes bankrupt when you least expect it. That’s probably a few months away from us because we don’t know. There is still a lot of leverage, collateral pledged against other collateral. This is a major financial crisis for the cryptocurrency world. “, he said.

While he has not explicitly defined when this next generation low will appear, Brian Kelly does not seem to be optimistic about the short – term evolution of the price of bitcoin. Analysts disagree with JP Morgan and believe bitcoin’s fall could be short-lived. However, a BTC break below $ 19,000 at the start of the day is likely to add to the current market sentiment.

Source: CryptoGlobe

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Luc Jose Adjinacou

Far from dampening my enthusiasm, an unsuccessful investment in cryptocurrency in 2017 only increased my enthusiasm. So I decided to study and understand the blockchain and its many uses and express my pen information related to this ecosystem.

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