Brian Kelly, a crypto entrepreneur and regular contributor to the CNBC spoke about what to expect from the crypto market in 2019. He was interviewed by Cointelegraph during the Crypto Finance Conference held in St. Moritz, Switzerland on Jan. 18. He claimed that there is no chance for a Bitcoin (BTC) Exchange-traded fund (ETC) approval in 2019, and shared a positive sentiment on overall crypto market turning bullish in 2019.
Crypto turns bullish
Kelly predicted that the downward trend may continue for some more time, but the trend is going to be finally reversed in 2019. The bear market which started in 2018 will finally end in 2019, the overall sentiment going into the year is positive. Due to geopolitical tensions like the trade war with China and the South China sea affair, the focus will shift to currencies like Bitcoin, Litecoin etc. Many big financial institutions are starting to use Bitcoin as an alternative to gold. Also, many countries like Venezuela and Argentina are using Bitcoin as a means to shield from the price fluctuation and volatility of their local fiat currencies. The reversal in trend has also been promoted by the larger acceptance of Bitcoin. Many will start using it as a way to protect their assets from local as well as geopolitical tensions. As prices stabilize, Bitcoin will start to gain more popularity as a store of value.
ETFs very unlikely
The chances of ETF seems gloomy as Kelly said the chances of government approval for Bitcoin ETF this year has ‘no shot’. Bitcoin ETF is an investment fund that would track the value of its underlying assets and trade on stock exchanges. The approval for ETFs is a prerequisite that will bring many major institutional investors into the crypto market and is highly anticipated by many in the industry as something that will bring in big money. The United States Securities and Exchange Commission (SEC) has received multiple requests for ETF approval in 2018 but none of them have been approved. Elaborating on the topic, Kelly said that there are too many issues to be resolved which are unlikely to be solved within this year. Even though we don’t know what the exact issues are, the lack of maturity in the Bitcoin futures market is something that might have played into the decision by SEC. Once ETFs get approval, it is going to bring in a lot of investment creating a bull run in the market.
Recession and future
The world will face a recession in the near future but unlike other industries, crypto is going to benefit from this recession. The recession, Kelly said, will be followed by a financial crisis but will be unlike the other crisis this one will be different. However, this presents a unique opportunity for cryptocurrencies. This could, finally, make them an alternative to fiat currency. There is no indication as to when this will happen but he is sure of the recession happening. Overall, the future of the crypto market is positive, but the delay in approval for EFTs will be a slight bump in the road which will be resolved soon.
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