Despite lackluster market performance by the cryptocurrency recently, Brian Kelly, founder and CEO of the investment company BKCM LLC, remains bullish on Bitcoin Cash (BCH). In an interview with CNBC on May 21, Kelly explained that BCH miners are aiming to take part of the earnings from mining operations and invest it back into the BCH ecosystem. He added, “That’s how blockchains gain value. You are going to be getting more use cases to the extent that usefulness translates into value. That could be a positive for [BCH].”
BCH jumped up to more than $1,600 on May 5 before dropping back down to the 50-day simple moving average (SMA) with a target price of $650. BCH, like all cryptocurrencies, has fallen again in the past 24 hours—with BCH losing just under 7%–but is still trading higher than it was in April, when it was trading at around $760. As of this writing, it is trading at close to $1,156.
In response to the miners’ injection of funds, back into the ecosystem, Kelly asserted, “That’s a place I want to buy.”
BCH is still anticipated to return to the $3,000 mark. Analysts think that the recent network upgrade and the inclusion of BCH on exchanges will help separate the digital currency from the BTC/BCH controversy and allow it to forge ahead. Additionally, the efforts of BCH proponents such as nChain CEO Jimmy Nguyen and Bitcoin.com CEO Roger Ver to help the coin gain global adoption will most certainly bring some strong positive results.
There are rumors that the Gemini exchange will provide support for BCH by the end of June. There has also been behind-the-scenes talk of the CBOE exchange adopting a Gemini API (application programming interface) to offer BCH futures sometime in the future. According to an identified source supposedly with Gemini, the exchange has delayed the inclusion of BCH so that CBOE could better prepare BCH futures integration.
The market has been in an undeniable slump lately. Many analysts and market watchers had expected to see BTC climb during Blockchain Week New York; however, it has declined around 10%. It fell below $8,000 before gaining ground to $8,400 last Monday. It has slipped again, now trading at around $8,190.