Asset Manager Sees Bitcoin Price Drop – Market Says It Was Mispriced

The market is mispricing bitcoin, says fund manager Brian Kelly, and "when bitcoin is mispriced this way, it's the sign of the bottom." He sees a number of "all positives" reflected in the cryptocurrency's pricing. Asset manager Brian Kelly said the Bitcoin market was mispriced. Kelly manages the BKCM Digital Asset Fund and the REX BKCM Blockchain ETF (NYSE: BKC). He wrote, "Bitcoin Big Bang – How Alternative Currencies Will Change the World". He was also a hedge fund manager at Shelter Harbor Capital, of which he was a co-founder. He was also the founding partner of MKM Partners, a brokerage house targeting corporate investment managers. “When you look at Bitcoin, for me it's all about network impact and address growth,” the asset manager said. “One of the most important metrics I look at when managing cryptocurrency is how fast addresses are growing versus what the market expects addresses to grow.” Referring to his chart, "Address growth is fundamentally stable, but the market thinks we're going to see a 20% drop in address growth. We haven't seen that kind of difference since March 2020." Kelly explained: In general, when bitcoin is so mispriced, it's a sign of bottoming out… The market is mispricing what's going on under bitcoin's underlying fundamentals. He continued: “We are looking at March 2020, when we had a big divergence when Bitcoin was $3,500 and rose to $60,000. We're looking at the same situation where Bitcoin seems to be trying to bottom out. As for his fund's investment, he has personally added to our fund this month because I think it's a huge opportunity. We are tall and taller in the background.” The fund manager then thought: "What do I do now?

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