The cryptocurrency market has been booming recently, with the collective market capitalization value pushing the $300 billion level. This new round of bullish price action has led some to ask what’s next for Bitcoin and for the rest of the cryptocurrency market.
Bitcoin’s Next Hurdle
Brian Kelly, CNBC’s in-house crypto analyst and CEO of a crypto-centric investment firm, recently made an appearance on CNBC’s “Fast Money” segment to let viewers know what hurdles Bitcoin will need to cross and what awaits the cryptocurrency market next.
— CNBC's Fast Money (@CNBCFastMoney) July 24, 2018
Firstly, Kelly commented on Bitcoin’s most recent price action, which saw the world’s foremost digital currency move up to $8,200 as of the time of press. Kelly stated:
“This feels like a very real rally. It feels like we are at the beginning stages of another bull market.”
The CEO of the crypto-focused BKCM fund went on to talk about the upcoming CBOE Bitcoin ETF verdict from the SEC, which is set to be released as soon as mid-August. This topic has become the talk of the town as of late, as many see a publicly-tradable crypto ETF as the next step towards widespread retail and institutional adoption, opening this nascent industry to millions of new investors.
However, Kelly recognized that the CBOE-backed ETF has a high likelihood of getting rejected or delayed, which is the “hurdle” which Bitcoin may need to metaphorically leap over in the upcoming months.
Kelly pointed out that Bitcoin may already be outperforming a preponderance of altcoins due to the fact that investors are prematurely presuming that the ETF is just around the corner, while stating that he would be “very cautious about making that bet, especially after this run.”
Will Altcoins Catch Up?
But even if the ETF faces rejection or a postponement order from regulatory bodies, the cryptocurrency analyst still expects for altcoins to see a bout of positive price action, connecting this situation back to the previous ETF proposal from the Winklevoss twins, who own the fittingly named Gemini cryptocurrency exchange. The analyst noted:
“Remember last year when we had the ETF, the Winklevii (Winklevoss Twins) ETF, that was rejected, but it actually boosted altcoins. So we’ve seen Bitcoin outperform, altcoins have been flat, coins like Ethereum and XRP have been flat because all of the money has been flowing into Bitcoin.”
As of the time of writing, Bitcoin market dominance has risen to 47% or the highest it has been since the cryptocurrency tested new all-time highs in December.
Kelly later conveyed that if the ruling isn’t positive for the ETF, we could see a capital flight from Bitcoin to altcoins, pushing altcoins relatively higher and allowing for market dominance to return to pre-ETF speculation levels.
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