Brian Kelly, who is a CNBC contributor, the CEO and founder of a cryptocurrency investment company named BKCM LLC, and the author of "The Bitcoin Big Bang — How Alternative Currencies Are About to Change the World," recently talked about the current and future state of the Bitcoin and larger digital currency market at the Crypto Finance Conference in St. Moritz, Switzerland. Kelly believes that this year will be a better year for cryptocurrencies than the last one, though he admits that this is not saying much. In particular, he thinks prices will rebound much as they have during other boom-and-bust cycles Bitcoin has experienced. But another fall is more than possible and Bitcoin could drop under $3,000 and even as low as $1,500. A big reason why Kelly thinks prices will rebound is that he sees major international players using Bitcoin as a hedge against volatility and fluctuations in fiat currencies. They are using Bitcoin much the same way that they have used gold in the past, and Kelly thinks that this will lead to Bitcoin becoming more of a mainstream asset among investors. While Kelly is bullish in general regarding digital currencies this year, this optimism does not apply to Bitcoin ETFs. In fact, he does not think that there is any chance that the SEC will approve one this year. He simply feels that there are too many unresolved issues relating to Bitcoin ETFs for approval to come in 2019. But he also thinks that there is a good chance that the SEC will approve one or more of them in 2020. Extensive layoffs have hit the cryptocurrency industry as of late, and Kelly believes that they are part of the industry's maturation process. He added that, while they may be painful to many in the short-term, in the long-term they will help the industry grow stronger. In terms of Bitcoin specifically, Kelly insists that it is currently 50% undervalued. He says that sentiment is what has driven the price of the currency below what it is really worth, but he also said that sentiment could lead to a huge upswing.
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