Brian Kelly from Bitcoin trading company BKCM claimed the implementation of a new regulated exchange for cryptocurrencies could come as soon as Q4 2018, bringing forward new opportunities for Bitcoin.
Asked about whether a regulated exchange and crypto custody system are “a long way off,” Mr Kelly told CNBC: “I don’t think they’re a long way off.
“I think they are probably Q4 2018 so I think that’s coming in the next four to six months or so.
“We are in an environment where there’s lots of regulation and this is the best opportunity to get something new through. The iron is hot, it’s time to strike.”
Bitcoin traders took part in an overnight flurry of sales, with BTC losing 3.71 percent on the day, trading at $7,496.36.
The rest of the market suffered from a bearish trend too, with Ethereum losing 5.57 percent to trade at $413.1, while Ripple dropped 3.50 percent to sell for $0.4401.
Mr Kelly continued: “You have to remember, Bitcoin can move five percent on any given day so. While it may seem crazy to the legacy market, in the Bitcoin world this is just a normal correction.”
The current trader positioning for bitcoin is indicative of a bearish incoming trend, according to IG Markets senior strategist Ilya Spivak.
Talking to Business Insider, Mr Spivak said: “The latest numbers show that close to 78% of IG retail traders are net-long bitcoin, with the ratio of traders long to short at about 3.5 to 1.
“We typically take a contrarian view of crowd sentiment, and the fact that traders are net-long suggests Bitcoin may be heading lower.”
“What briefly looked like it may be an upside breakout fizzled as BTC/USD fell back into a Triangle consolidation pattern carved out since February.
“Critical support remains in the $US5790-$US6450 area, with a break below that opening the door for a test below the $US5,000 figure.”