CNBC’s Brian Kelly on Bitcoin: ‘We’re getting much closer to a generational low’

On Thursday, June 30, hedge fund manager and CNBC contributor Brian Kelly (aka “BK”) explained when we can expect Bitcoin price to bottom.

According to his organic on the CNBC website, Kelly is the founder and CEO of BKCM LLC, an asset management firm focused on “global macro and currency investing, including investing in digital currencies.” Additionally, he is the portfolio manager of the BKCM Digital Asset Fund and the REX BKCM Blockchain ETF (NYSE: BKC).

Kelly is also the author of book “The Bitcoin Big Bang: How Alternative Currencies Are About to Change the World” (which was published by Wiley in November 2014).

Kelly’s final Bitcoin comments came during a segment on Thursday episode from CNBC”quick money– hosted by Melissa Lee – at a time when Bitcoin was trading around $18,850.

When Lee asked Kelly how long it would take before Bitcoin hit bottom, Kelly replied:

I’ll give you my lawyer’s answer: it depends. That’s a good news, bad news scenario, isn’t it?

So the good news is that I think we’re getting a lot closer to our generational low. The bad news is that this may not be the case before Bitcoin hits $10,000. And by the way, the catalyst will be rising inflation expectations and all the world’s central banks making a policy mistake. So, it’s not a world I’m looking forward to living in, but you know what, I’m here.

And I think if you get those three combos, one last hunt of all that leverage in bitcoin up to 10K, 15K, somewhere around that and inflation expectations go up, which I think will happen to the next quarter or so, and we already know every central bank has already made a policy mistake and will likely continue to make more. This is the perfect scenario for a bottom in Bitcoin. So, now you have it. We just have to wait.

Later in the segment, Kelly had this to say about leverage in the crypto space:

There is still a lot of leverage there. There are buyers of last resort, but their offers are at a penny on the dollar… So the buyers are there. It’s not at that level…

We are probably months away from a “Lehman moment”, ie a kind of last flush down. Someone big goes bankrupt that you didn’t expect. We’re probably months away from that because we just don’t know. There is still a lot of leverage, collateral pledged against collateral elsewhere. This is a big financial crisis for the crypto world. We built this Wall Street 2.0, and it just didn’t work anymore. Shocking! And so we have to flush that out very quickly.

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