By CCN: Now that the bitcoin price is holding at the $8,000 level, investors are anxiously awaiting what comes next. Bitcoin’s value has expanded by 50% over the last 30 days, but the bulls are currently taking a breather and momentum appears to have stalled.
Crypto fund manager Brian Kelly on CNBC provided some anecdotal evidence that the bitcoin price is only getting started, not the least of which is that miners are reportedly hoarding bitcoin rather than directing it toward total circulation, which is helping to fuel gains in the BTC price.
Kelly explains that he has had discussions with bitcoin miners globally and they have liquidated enough of their BTC rewards to keep operations running for roughly the next 12 months. As a result, they’re “hoarding it.” He explained that miners are saying:
“We are going to hoard bitcoin at this point in time. We’re not going to sell it.”
— CNBC's Fast Money (@CNBCFastMoney) May 21, 2019
Their timing couldn’t be better considering that bitcoin’s long-awaited halving event is coming up in 2020. As CCN has reported, the bitcoin supply is about to be slashed, which by the code’s design occurs every four years. It means that bitcoin miners’ reward for mining a block will be slashed in half. According to Kelly, the BTC price historically rallies in the year prior to and following the halving event. So the catalysts are two-pronged comprised of rising demand and lower supply, the result of which lends itself to a bullish case for bitcoin. Kelly stated:
“So it’s just real simple economics.”
Retail and Institutional Demand for Bitcoin
So you’re probably wondering where all the demand is stemming from this bull market. It’s actually a combination of both individual and institutional investor demand, and this has a lot to do with the influx of mainstream players into the market. Fidelity is now custodying cryptocurrency assets for big investors.
— Fidelity Digital Assets (@DigitalAssets) May 22, 2019
On the retail investor front, TD Ameritrade has backed regulated crypto exchange ErisX and it’s only a matter of time before they roll out spot trading to the world – as long as ErisX reaches its milestones.
BK’s 2 Satoshis
Brian Kelly’s advice? Buy it now and don’t come crying to him when you miss your window.
“While we’re down at these levels, please size this appropriately. It’s a risky thing. One percent to 5% of your portfolio. And when it goes higher and you buy it at the top, don’t tell BK that ‘I bought too much.” Buy it here.”
Last modified (UTC): May 22, 2019 5:22 PM