Bitcoin's Next Steps After Halving
Hey folks.
The founder and CEO of Brian Kelly Capital on 22 April 2024, talked about the prospects of Bitcoin following its 4th halving on CNBC.
Several points were discussed that could be important for investors and enthusiasts interested in the future movements of Bitcoin.
Sell Pressure
According to Kelly, the halving of Bitcoin reduced the daily sell pressure from about $60 million to $30 million. However, arguing that in the context of the market cap of Bitcoin, which is a trillion-dollar market, this reduction is relatively small and might not have a significant direct impact on the price of Bitcoin. Alternatively, a more significant role can be played by the psychological impact and the narrative surrounding the four-year halving cycle.
Institutional Participation
Kelly pinpointed the potential influx of institutional investors as an important factor for the future of Bitcoin. Kelly stated that there is a lot of pent-up demand that might enter the market when big brokerage houses like Morgan Stanley and UBS get ready to let their clients invest in Bitcoin.
A Safe Haven Asset
Bitcoin evolving into a safe haven asset, the idea is touched by Kelly, akin to gold, but this transaction could take another 10 to 20 years, he suggested. Kelly acknowledged that Bitcoin still is in the early stages of the adoption curve.
Geopolitics Impact
Bitcoin has shown a correlation with gold during geopolitical tensions as it reported negatively in recent events like the Iran-Israel conflict, according to the discussion.
Bitcoin Value
According to Kelly, with the potential decreases in purchasing power and real income due to inflation, Bitcoin could become a more alluring investment as a non-sovereign store of value.
Other Ways to Gain Exposure to Crypto
He mentioned that buying stocks in Bitcoin mining could be another good play and that other worthwhile cryptocurrencies to consider investing in were Ethereum and Solana.
This is not a financial advice.
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