On Thursday (June 30), hedge fund manager and CNBC contributor Brian Kelly (aka “BK”) explained when we could expect to see the Bitcoin price hit bottom.

According to his bio on the CNBC website, Kelly is the founder and CEO of BKCM LLC, an asset management firm focused on “global macro and currency investing, including investing in digital currencies.” Furthermore, he is the portfolio manager of the BKCM Digital Asset Fund and the REX BKCM Blockchain ETF (NYSE: BKC).

Kelly is also the author of the book “The Bitcoin Big Bang: How Alternative Currencies Are About to Change the World” (which was published by Wiley in November 2014).

Kelly’s latest comments on Bitcoin were made during a segment on Thursday’s episode of CNBC’s “Fast Money” — hosted by Melissa Lee — at a time when Bitcoin was trading around $18,850.

When Lee asked Kelly how long it would be before Bitcoin would bottom, Kelly replied:

I’ll give you the my lawyer answer: it depends. It’s a good news, bad news scenario, right?

So, the good news is I do think we are getting a lot closer to our generational bottom. The bad news is it might not be until Bitcoin hits 10 grand. And by the way, the catalyst for it is going to be inflation expectations picking up and every central bank in the world making a policy error. So, that’s not a world I’m all that excited about living in, but you know what, here I am.

And I think if you get those three combos, a final flush out of all this leverage in Bitcoin down to 10K, 15K, somewhere around that and inflation expectations picking up, which I think come in the next quarter or so, and we already know every central bank has already made a policy mistake and likely to continue to do more. That is the perfect scenario for a bottom in Bitcoin. So, now you have it. We just gotta wait.

Later, in the segment, Kelly had this to say about the flushing of leverage in the crypto space:

There’s still a lot of leverage out there. There are buyers of last resort out there, but their bids are a penny on the dollar… So, the buyers are out there. It’s just not at this level…

We’re probably months away from a ‘Lehman moment’, meaning hat kind of one last flush down. Somebody big goes bankrupt that you never expected. We’re probably months away from that because we just don’t know. There’s still a lot of leverage, collateral pledged against collateral elsewhere. It is a great financial crisis for the crypto world. We built that Wall Street 2.0, and it didn’t work again. Shocker! And so we got to flush that out real quick.

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