We are in the midst of a “crypto civil war”: BKCM Founder and CEO Brian Kelly
There was a sense of calm about Bitcoin in the recent months as the leading cryptocurrency coasted on less volatility and serene waters till everything caught fire and the prices fell by over 10 percent on Wednesday. BKCM founder and CEO Brian Kelly spoke to CNBC. He said that the sudden and sharp downturn had to do with the Bitcoin Cash hard fork, which splintered off from Bitcoin in August 2017 in an effort to facilitate more transactions.
Speaking to CNBC Fast Money, Kelly said, “Bitcoin Cash is doing a hard fork or effectively a software upgrade. When you do a software upgrade everyone agrees, but in this particular case everybody seems to be not agreeing.”
“So, we have got ourselves a crypto civil war,” he added. He said that we could have a slowdown or “Chaos” after the BCH upgrade.
Issuing a small warning to buyers, Kelly said, “If you do not understand hard fork, don’t jump into the pool right now. It’s a deep end.”
Speaking about the bearish trend witnessed by the market, Melten Demirors said, “A number of events piled up and led to some funds taking some money off the table.”
She also highlighted the fact that all the main digital assets other than Bitcoin are in the phase of the liquidity crisis and there has been a drop of nearly 75 percent to 90 percent in asset prices across the board, which doesn’t bode well for the crypto market.
Bitcoin witnessed a meteoric rise in 2017, with figures touching $19,000 in December 2017. But since then, the market has been on a consistent downward slope and market saw a huge dip on Wednesday which saw all the major coins suffer double-digit losses. Only Ripples’ XRP suffered a loss of nearly 8 percent and it surpassed Ethereum at number 2 position and stood at $0.469221 at the time of writing. At the time of writing, Bitcoin stood at $5721.42 breaching the key support level of $6000.
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