Now that Tax Day has come and gone, the cryptocurrency bear market may be winding down as well. Brian Kelly, founder and CEO of BKCM, an investment firm focused on digital currencies, said alt-coins will make a comeback as well, and recommends investing in bitcoin cash.
“Bitcoin cash has been left for dead,” Kelly told CNBC on “Fast Money” Tuesday. “Maybe it’s mostly dead, but it’s not dead yet.”
Bitcoin cash may have a breakout looming, Kelly said. He cites the coin’s increased volatility in the past month and increased volume as proof of its potential to grow.
“Those are the first things traders look at, that I look at, to say, something might be changing here,” Kelly said. “If we get that breakout, you’re looking at higher moves.”
“I would be buying the dip,” he said.
Bitcoin cash has a market cap of approximately $13 billion, according to Coinbase, and was trading around $763 Tuesday at 5:30 p.m. ET.
Meanwhile, some of the cryptocurrency world’s most famous names are also making a comeback. Since April 11, bitcoin has risen 16 percent, ethereum 23 percent, litecoin 18 percent and ripple 35 percent. Some traders say with tax-selling pressure gone, digital assets such as cryptocurrency will rally, so now is the time to buy.
But investors shouldn’t be intimidated by the smaller bitcoin, Kelly said.
“Some people are saying, which is the real bitcoin?” he said.
“I’m not taking sides,” Kelly said. “I’ll let everyone else decide that. I just want to make money.”
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