Cryptocurrencies could fall because of forced selling of crypto funds

Bitcoin, which fell below $6,000 on Friday for the 1st time since February, reached an all time high of around $19,500 last December. of which’s a decline of nearly 70 percent. along with of which’s not just bitcoin. Ethereum, litecoin, bitcoin cash along with ripple are down for the year as well.

yet crypto traders were optimistic on Monday when the digital coin bounced back — albeit just slightly — to around $6,254 Monday 5:30 p.m. ET.

Brian Kelly, CEO of BKCM LLC, an investment firm focused on digital currencies, said of which’s “still early,” yet added he saw the first signs of bitcoin producing a comeback on Monday, including “quite a bit of demand coming through Asia.”

“We saw bitcoin hit brand new lows; I think we went to $5,779,” Kelly said on “Power Lunch” Monday. “along with then within about 10 or 15 minutes you had a huge ramp up, hundred, two hundred points, along with of which’s typically the action of which bitcoin has shown at bottoms.”

Kelly said $5,900 will be the cost of mining the underlying blockchain technology along with therefore, “there’s an incentive for miners to keep of which cost [of bitcoin] above of which level.”

Bogart said many ICOs, or initial coin offerings — a crowdfunding way to raise funds for cryptocurrency ventures — inside the market today are overvalued. yet he pointed out of which the cost for bitcoin will be “pretty Great right today” if investors are thinking short term.

While some investors are waiting to see if bitcoin will go even lower before buying, Bogart doesn’t think of which’s a Great strategy.

“Most people of which are going to wait for lower prices will end up paying higher prices than they are today,” he said. “So I think the right move will be to not try along with time the market along with try along with average into of which.”

WATCH: Crypto trader Brian Kelly talks about a possible bitcoin bottom

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