Having plunged roughly 7 percent throughout the week, Bitcoin (BTC) 00 is experiencing a “minor correction,” according to permabull Brian Kelly — who identifies the establishment of a regulated cryptocurrency exchange and secure custodial services as potential triggers for a major breakout.
‘It’s Just a Normal Correction’
Bitcoin has taken a serious hit throughout the week, dropping roughly seven percent in the same amount of days.
Despite the latest price drop, the CEO and founder of digital currency investment firm BKCM LLC, Brian Kelly, told CNBC that the market appears to have reversed towards the positive. He attributes this to a string of positive news in the field — starting with the SEC’s statement that Bitcoin and Ethereum are not considered securities and the building of hype around a potential SEC-approved Bitcoin ETF.
In terms of the current decline in the price of the world’s first and foremost digital currency, Kelly notes:
[Bitcoin has] had a pretty good run from $5,800 up to $8,300, $8,400 or so. […] So while it might seem crazy to the legacy markets and the bitcoin world, this is just a normal correction.
At the same time, the Fast Money trader also outlined that Bitcoin is “not quite ready for prime time yet.”
Challenges to Overcome
Remaining entirely positive on the future of Bitcoin, Kelly believes that an SEC-approved exchange-traded fund (ETF) is of paramount importance. However, in order for that to happen, he thinks that “there are still two big hurdles we need to cross” — which would act as a catalyst.
The first hurdle would be the establishment of a regulated US cryptocurrency exchange. As a positive development in this regard, the CEO of Nasdaq, Adena Friedman, said in April that the company is interested in becoming a cryptocurrency exchange platform.
The second hurdle, according to Kelly, is the need for an institutional-quality custody solution. This is further emphasized by the fact that big names such as BlackRock Investment are turning their eyes towards the field.
The trader went so far as to forecast a potential approval of a cryptocurrency ETF within “the next four months or so,” noting that the relatively low amount of regulation in the field is actually beneficial and provides “the best opportunity to get something new through.”
What do you think of Brian Kelly’s position on Bitcoin and a potential SEC-approved ETF? Don’t hesitate to let us know in the comments below!
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