Among the claims that Bitcoin could rally into 2020’s block reward reduction have ramped, many have remained cautious of BTC’s short-term prospects. A number of analysts and industry commentators assert that the bottom is far from in.
The CEO of the blockchain-friendly investment company BKCM, Brian Kelly has recently told CoinTelegraph at Switzerland’s Crypto Finance Conference that he believes that Bitcoin could sink to $ 3000 in the near future. According to the businessman, recently expressed before European journalists, now the pressure on the cryptocurrency market continues to increase. In this situation, the risks of a fall in the value of the main cryptocurrency to $ 3000 or even below this indicator increase.
“I look at the price and I say that we’ve seen three or four of these kind of boom-and-bust cycles in Bitcoin.
If you look at the most recent two or so, we’re following roughly the same path as we’ve had…
We might have another dip lower — it wouldn’t surprise me at all.”
Kelly also remarked that from a catalyst perspective, the sell-off is likely to be breathing the last breaths. Brian Kelly even allows for the option of dropping a bitcoin exchange rate to $ 1,500. Bitcoin is “about 50% undervalued”. In this case, the Altcoins will also demonstrate a reduction, the result of which the ether, for example, will become cheaper to $ 50.
However, the investor urges market participants not to panic, as he believes that sales are gradually running out of steam. And this creates the prerequisites for the resumption of growth of Bitcoin, which, moreover, by about 50% is now undervalued.
In mid-November last year, Brian Kelly stated that the main reason for the sharp decline in the value of BTC was hardfork in the Bitcoin Cash network. Many traders began to aggressively sell cryptocurrency because of concerns that a software update on the BCH network would have a negative impact on the performance of the Bitcoin platform.