On Friday (September 2), hedge fund manager and CNBC contributor Brian Kelly (aka “BK”) shared his views on price action in the cryptocurrency market and specifically how the Ethereum Merge upgrade could affect. the price of $ ETH.
According to his biography 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 the book “The Bitcoin Big Bang: How Alternative Currencies Are About to Change the World” (published by Wiley in November 2014).
Kelly’s latest comments on cryptocurrencies were made during a segment of Friday’s episode of CNBC’s “Fast Money” – hosted by Melissa Lee – at a time when Bitcoin was trading around the $ 20,000 level.
According to a report by The Daily Hodl, when Lee asked BK about the correlation between cryptocurrencies and Nasdaq, BK replied:
“It was very high. The correlation between Bitcoin and Nasdaq is around 60%. Ethereum’s correlation with Nasdaq is around 70% for the past 30 consecutive days … Crypto actually behaves like a triple Q ETF with 2x leverage [exchange traded fund].
“I think there is some nuance here, as Bitcoin itself is not a tech stock. It is definitely an alternative currency. It is digital gold and you need it when your country destroys its currency or as many governments do today.
“Ethereum, on the other hand, can somehow be considered a tech stock because it will disrupt much of what tech stocks are doing today. To the extent that it takes daily active users away from places like Twitter, Facebook and Google, I think there is something to be said about Ethereum being a tech stock, but in general I don’t think cryptocurrencies really hit rock bottom until it does. they break correlation because otherwise why do I need it if not for a leveraged game on the Nasdaq.“
BK was also asked about Ethereum’s upcoming Merge update, which marks the Ethereum network’s transition from proof-of-work (PoW) to proof-of-stake (PoS), and is expected to take place between September 10 and September 20. September – and how it might affect the price of $ ETH.
“I think it’s probably more “selling the news”, which is perhaps not that intuitive because in cryptocurrencies you generally want to buy the news. But everyone bought Ethereum because they are entering this merger and now you will get a so called yield. Just so you know, it’s not really a yield. You’re just catching up on your inflation premiums, so it’s kind of offsetting inflation in the currency. It’s not really a surrender …
“There is probably greater potential for a news selling event entering the merger. You may also have a glitch. Not only could there be a glitch, but there are a lot of questions about what the apps will do if Ethereum splits again...
“You may have a chain fork and now not one, but two or three different Ethereum. So what does your DApp (decentralized application) do and what does it play on? I think the Ethereum merger is riskier than what people give credit for. “
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