Bitcoin has to get over what Elon Musk says to become a global currency, a digital asset investment chief says
- The whole point of
bitcoinis that no one person should be able to influence its price.
- It can't be swayed by billionaire
Elon Muskif it is to become a global currency, Brian Kelly said.
- The dramatic sell-off in bitcoin is a good buying opportunity, according to him.
Elon Musk's bitcoin retreat over its energy consumption moved the market, but the digital asset will have to move on from what he says if it is to become a global currency, according to Brian Kelly, founder and CEO of BKCM Digital Asset Management.
"The entire point of the creator, Satoshi Nakamoto, getting out of the way is that there would be no single person that has control over it - either the protocol, the code, or the price," Kelly told CNBC's "Closing Bell" on Wednesday.
"Now we have Elon Musk, who voiced some concerns. It did move the market, but bitcoin has to get over it in the long run if it is going to fulfill that promise of becoming a global currency. I happen to think that it will," he added.
He said a price correction has taken place multiple times across several cycles, and each time, bitcoin has rebounded more strongly.
Bitcoin was last trading 8% higher at $39,423 on Thursday, after falling to as little as $30,016 the previous day. It is up 38% so far this year. Other coins were still struggling to regain some stability after the rout the day before. Ethereum's ether fell 10% to $2,632 and meme-crypto dogecoin fell 14% to 35 cents.
Read More: Wells Fargo's investment institute is in the final stages of onboarding an active crypto strategy for its wealthy clients. Its president told us why the firm changed its mind on crypto - and shared the key merits and risks of the 'investable asset.'
Kelly said the theory that bitcoin is a hedge against inflation and institutional adoption now playing into the
The fact that financial institutions, hedge funds, and more high-net worth investors are getting involved has legitimized the industry and relieved some concern among market players over crypto's long-term viability. But its volatility this week has eroded confidence in the asset class as a whole, as illustrated by a "fear and greed" indicator signaling extreme nervousness among investors.
Still, the dramatic sell-off in bitcoin is a good buying opportunity based on technical analysis and fundamentals, Kelly said.
- Facebook and Microsoft aren’t the only ones creating a metaverse — here are five popular coins looking to create digital worlds
- Loaded Lion NFT sells for $1 million — three days after launching at $200
- Qatar Airways says it is not accepting passengers on its flights from 2 African nations immediately due to the new Omicron variant
- Mukesh Ambani-led Reliance Jio hikes prices of its plans by 21%
- Facebook, Microsoft and others look towards the $1 trillion dollar ‘metaverse’ opportunity — but that contradicts the base philosophy behind Web 3.0
- Paytm Q2 result — Operational revenue crosses ₹1000 crore, loss widens by ₹37 crore
- These Indian states have the highest number of international airports; UP tops the list
- Centre raises Bengal labour budget for creation of 27 cr man-days