Following a strong performance by Bitcoin (BTC) and altcoins in 2023, the crypto market’s activity has increased with the new year. Brian Kelly, founder and CEO of digital asset investment firm BKCM and a CNBC analyst, predicts a prolonged bull market for cryptocurrencies, potentially lasting more than a year.
In a recent interview on CNBC’s Fast Money, Kelly highlighted various indicators suggesting a bullish turn for cryptocurrencies. He drew parallels between the expected spread of a bull market in stocks to mid and small-cap companies and a similar expansion happening in the crypto market.
Kelly noted the rally’s breadth, with altcoins like Polkadot (DOT), Cosmos (ATOM), and Solana (SOL) coming into focus. He emphasized the significance of real-world applications being built on these cryptocurrencies, such as the increased activity in decentralized exchanges (DEXs) and the surge in borrowing from decentralized finance (DeFi) platforms.
These indicators suggest to Kelly that the bull market is broadening, with strong fundamentals supporting it. He believes we are likely at the beginning of a 12 to 18-month bull market, with expectations for it to spread to other cryptocurrencies.
However, Kelly cautioned about the potential “buy the rumor, sell the news” scenario with the U.S. Securities and Exchange Commission’s (SEC) approval of spot Bitcoin ETFs. Despite this, he anticipates Bitcoin will rise again as traditional finance begins to invest through ETFs.