The head of BKCM company, Brian Kelly, believes that recent drop of BTC was driven recent Bitcoin Cash’s row and controversy around it: “After some real quiet period, lowest volatility, almost in Bitcoin history, all of a sudden today things exploded, so what happened? Bitcoin Cash, which forked off of Bitcoin last year, is doing a hard fork. Now, when you do a hard fork, everybody usually agrees. But in this particular case, everybody is not agreeing. So we’ve got ourselves a crypto civil war, and that has people in the market concerned.” This crypto turmoil led to the situation when BTC volatility rate exceeded the index of seven on Bitcointicker for the first time since April 2018.
The BCH hard-fork impact was described by Kelly as a process when miners switching powers from Bitcoin mining to support Bitcoin Cash hard-fork: “People are concerned that both Bitcoin and Bitcoin Cash markets, their networks might slow down, they might not work as well, the software upgrade may not go through or if it does go through, we will end up with some chaos. People started selling, that triggered stops, everybody got concerned. The entire market settled down. In my view, a very short-term event.”
So Kelly considers current crypto depression as short-lived but Rob Slyumer from Fundstrat Global Advisors guesses that it takes months to get crypto market recovered. Both agree that sooner or later crypto market will stage “multi-month bull run.”