CNBC’s Brian Kelly, who is also the founder and CEO of crypto hedge fund BKCM LLC has predicted that there “could be a big breakout ahead” for Bitcoin (BTC).
May 2, 2020 | AtoZ Markets – As the Bitcoin halving comes up, Fast Money, a CNBC post-market show, has explained the implications of the coin’s next block reward halving.
On May 12, the number of bitcoins entering circulation every 10 minutes (known as block rewards) will drop by half, to 6.25 from 12.5. It’s a milestone that’s easy to see coming because it happens every four years and has happened twice before.
CNBC’s Brian Kelly explains what to expect from Bitcoin halving
Brian Kelly, chief executive of hedge fund BKCM, was explaining about the upcoming halving during the Fast Money interview by host Melissa Lee.
In the talk show segment on May 1, Mellissa asked Kelly how long the crypto community will need to wait before the next Bitcoin halving. Kelly replied and said halving will be coming up in 11 days. He stated that Bitcoin too will be experiencing quantitative hardening as the world is quarantining itself.
“It doesn’t mean that the price of Bitcoin is being cut in half — it just means that the daily supply is being cut in half,’ Kelly explained.
He further pointed out that there will be a reduction of supply as half of the Bitcoin mining systems will be turned off. The Bitcoin environment will contract, as lesser Bitcoin will be mined while the entire world is busy printing more money during this quarantining period. As a result, Bitcoin will be scarcer than gold according to the stock-to-flow ratio.
Bitcoin halving is not a period of massive “sell-out”
During the interview, Kelly also told investors that they don’t necessarily need to go on massive sellout during Bitcoin halving. He said for the past two Bitcoin halving, it wasn’t until several weeks for the implication to hit the market.
Hot subject: Google Searches for ‘Bitcoin Halving’ Have Surged
Referring again to the fact that Bitcoin miners will receive fewer rewards post halving, he added that the “weaker ones” might drop out. However, Kelly predicted that in thirty to sixty days from now, “we can see a nice run-up again.”
Before the interview with Kelly on Friday, Bitcoin’s price was around $8,740. At the time of writing, Bitcoin price is trading at the $8,900 level.
Bitcoin waxes stronger amid COVID-19 pandemic
The current COVID-19 pandemic does not seem to have a grave impact on the value of Bitcoin. The only event that shook the Bitcoin market this year was the massive liquidity crises on March 12 (Black Thursday). The event resulted in crashes in prices of almost all types of assets. However, Bitcoin is still strong and 25.50% up this year despite all the challenges.
Do you believe Bitcoin will surge higher after the halving event? Share your prediction in the comments below.