Bitcoin Historic Boom Incoming, But Get Ready For A Potential Sell-Off First
Bitcoin’s halving is getting closer with quick steps, and the crypto space is flooded with all kinds of price-related predictions ahead of the important event.
Most of the predictions that are popping up are claiming that this event will be taking Bitcoin to the moon, but other analysts are careful and warn traders that we might experience a strong pullback before the massive bull.
At the moment of writing this article, Bitcoin is trading in the green on CMC and the coin is priced at $9,022.12.
Brian Kelly is expecting to see a massive BTC rally
CNBC contributor Brian Kelly said that the halving will trigger a massive rally for Bitcoin and this is a sure thing.
During a new episode of Fast Money, he said that Bitcoin’s monetary supply is now in massive contrast to the widespread push to support the global economy by printing money.
— CNBC’s Fast Money (@CNBCFastMoney) May 1, 2020
“What people should know is, as the whole world is quantitative easing, Bitcoin’s about to be quantitative hardening. So the software is going to cut the daily supply,” he said.
Kelly continued and explained that “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. You might want to think about it like oil, where all of a sudden [in] 11 days, half the oil rigs are turned off, and therefore that supply gets reduced. In the past, this has been a catalyst for very big run-ups.”
Kelly also addressed his views in the long run for Bitcoin. He said that in the medium term, the asset would become more scarce than gold based on the stock-to-flow ratio. All this will be happening in an environment that is focused on printing money these days as we said above.
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Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.