Many in the cryptocurrency community thought that Bitcoin bottomed at $6,000, as it held over that price level for weeks on end. However, Bitcoin dropped under $5,800 on the weekend, leading some to believe that Bitcoin’s price could move even lower. Brian Kelly, leading cryptocurrency trader and analyst on CNBC, drew attention to four reasons why he believes the most popular cryptocurrency has found a price bottom.
Brian Kelly also mentioned that the average mining cost of one BTC sits around $5,900, indicating a potential for strong support over that level. Tom Lee, co-founder of analysis firm Fundstrat, also believes that the mining costs are a vital level for the most prominent cryptocurrency to hold.
The addition of 250 Million USDT was also an indicator which he used, expressing that the issuance of Tether “indicates there’s demand coming, and most of that demand is Asian demand as they most of the Asian exchanges use quite a bit of the Tether product (USDT).”
With Melessia Lee also pointing out that the ‘granting’ of Tether shows that fiat investment into the industry is on the rise.
Last but not least, Kelly mentioned that there is a direct correlation between “currency crisis” and the rise in the price of crypto assets, specifically Bitcoin. The CNBC trader also noted that crpytocurrencies, like Bitcoin “work very well” for being “an alternative currency,” holding its value through a decentralized system in comparison with centralized government-issued currencies.
It is still unclear whether Kelly’s price bottom prediction is accurate. But the accuracy of his analysis will become apparent over the following weeks as volatility in this market continues.