There is no denying that everyone is excited about the recent development in the crypto industry today. Bitcoin looks healthy and everyone is talking about it. In fact, many are waiting for the possibility of another bull run. For Brian Kelly of BKCM LLC, he believes that it is the beginning of another bull run.
Since the beginning of 2019, Bitcoin is already up by 40%. Bitcoin has been able to stay above the $5K level. On April 10, Brian Kelly mentioned that the $3,100 fall of Bitcoin in December 2018 was the new long-term low for the cryptocurrency. Bitcoin crashed around mid-November after the Bitcoin Cash fork happened. For Kelly, he mentioned that “I think it is a Bitcoin resurgence. I think there is a pretty good chance that the December lows we saw in the $3,000 (level) is probably the lows for this cycle”.
Surpass its All-Time High?
According to Kelly, there are things happening in the industry that has worked in favor of Bitcoin. First, you have the Fidelity custody platform. Also, there is also the interest of institutional investors to invest in the crypto market. Also, there is a spike in the BTC futures contracts.
Kelly said that: “You are starting to see institutional investors coming in here with a good fundamental tailwind and that’s got Bitcoin back in the saddle again”.
There are also other signs that there is really a bullish market. For instance, the Kimchi Premium is already back in South Korea. There are also reports that Chinese traders are also paying a premium price. There is also the fact that there is a growing number of active BTC wallet addresses. It has increased by 26% since the beginning of 2018.
According to Brian Kelly, there is a possibility that Bitcoin is going to surpass its near $20K all-time high.
Adoption could bring the price of cryptocurrencies up. Though it seems that it still hasn’t caught up to the general public, there is an increasing number of businesses accepting cryptocurrencies. According to a poll by the IMF, they raised a poll question “How do you think you will be paying for lunch in 5 years?”.
56% of its respondents answered cryptocurrencies followed by 28% saying mobile phone. Could this growing sentiment mean that adoption of cryptocurrencies is inevitable? Coinbase recently announced that they are having a cryptocurrency Visa card. Here, it allows its UK customers to spend using Bitcoin, Ethereum, Litecoin, and other major altcoins. According to Coinbase’s blog post: “Coinbase Card supports all crypto assets available to buy and sell on the Coinbase platform, meaning they can pay for a meal with Bitcoin or use Ethereum to fund their train ticket home”.
There are a number of factors that may have affected the adoption of cryptocurrencies over the last year. One, you have the regulatory hurdles that the crypto industry needs to resolve. In addition to this, you also have the growing concern that cryptocurrencies are easily used for money laundering and other illicit activities. Today, the SEC has considered both Bitcoin and Ethereum not as securities. However, for the rest, altcoins are still left in limbo.