CNBC contributor Brian Kelly, the founder and CEO of crypto investment firm BKCM, has argued bitcoin is being used as a hedge against economic uncertainty but as “pure speculation.”

Commenting on a buy signal pointed out by a Goldman Sachs sales and trading desk, Brian Kelly revealed that while he likes the call he is “concerned about the bitcoin market” as the number of BTC addresses hasn’t been growing.

Per the analyst bitcoin “has been trading right with gold for the first time” since he started covering the cryptocurrency back in 2013.  This, he said, means bitcoin is now being used as a currency hedge by macro players and other investors, even though at this point it’s “pure speculation.”

The analyst then added that we’re currently seeing a “perfect storm” for bitcoin as there are multiple fiat currencies “breaking down at the same time,” and institutional investors are now starting to embrace cryptocurrencies.

These two combined, he added, “funneled all the money into bitcoin” helping the flagship cryptocurrency outperform other assets so far this year. In December of 2018 BTC was trading at about $3,200, and has been rising this year to a current $10,980.

Kelly was likely referring to the Argentine peso and the Chinese yuan when he mentioned declining fiat currencies. As covered the peso recently plummeted after the country’s President Mauricio Macri suffered a defeat in the weekend’s primary elections, leading to speculation a bitcoin premium was developing in the country.

The yuan, on the other hand, dropped to an 11-year low as China devalued its currency to offset the impact of tariffs imposed on the country by the Trump administration. Amid fears of a trade war escalation equity markets plummeted, and bitcoin started rising.

Back in April, Kelly explained why he believed bitcoin was headed for a new all-time high, pointing to solid fundamentals he argued were behind the cryptocurrency’s rise this year.