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Brian Kelly Talks Bitcoin (BTC) ‘Halvening,’ Gives Portfolio Recommendation

Brian Kelly Bitcoin Halvening Price 2019

Brian Kelly, CEO of digital currency investment firm BKCM LLC and regular pundit on cryptocurrency, appeared on CNBC to explain Bitcoin’s current run to $8000 and how he imagines the price could rise even further.

Speaking with CNBC’s Fast Money program on May 21, the fund manager highlighted Bitcoin’s upcoming ‘halvening’ as a potential multiplier for the price of the currency. While the next reduction in mining rewards–when the payout falls from 12.5 to 6.25 BTC per block mined–is still a year away, Kelly believes the market ramifications will be felt even earlier.

In exactly 365 days we will experience the third bitcoin halving in history. This event marks a 50% decrease of block rewards, lowering the total supply of bitcoins mined from one block to only 6.25 BTC. How will you celebrate this event?

At present, Kelly claims that miners are hoarding BTC in anticipation of increased demand and a higher valuation in the future. While the 12.5 BTC reward payout gives them the luxury to retain some Bitcoin, as opposed to immediately selling it on the market to recoup operating and electricity costs, Kelly predicts that will be less convenient following the halvening. In addition, miners are looking to the growth of institutional investment and adoption to take the price of Bitcoin well beyond its current $8000 range.

In conjunction with a 50% reduction in new Bitcoin creation, the growth of cryptocurrency into institutional and retail use-cases will further drive demand. Increased demand and dwindling supply is what makes Kelly think that Bitcoin is in for a bullish cycle ahead, both in the lead up to the halvening and its in aftermath.

Kelly commented on the four year market cycle that characterizes each halvening, concluding that the current period has historically been good for the price of Bitcoin,  

“You generally have a rally a year into it, and a year out of it. And so we’re just at the beginning of that stage […] a supply cut is generally bullish.”

In addition to sharing his insight on the halving and what it means for upcoming Bitcoin prices, Kelly also gave a recommendation for asset allocation. He advised investors to dedicate between 1 and 5 percent of their overall portfolio to Bitcoin and cryptocurrency, while the price of BTC is still hovering at the $8000 mark.

Analysts have been split between bullish and bearish for Bitcoin following the massive rally that kicked off in early April. While the price of BTC is up over 100 percent since the start of 2019, some analysts see the bullish rally as short-lived and could see BTC retesting $6000 before generating continued price momentum.

Others have begun to point to geopolitical factors and economic policy as being the key drivers for Bitcoin price growth. With a trade war brewing between the U.S. and China, economic uncertainty over the USD/Yuan exchange rate has certain investors turning to Bitcoin as an alternative investment.

The rise of mainstream adoption for cryptocurrency also continues to be a major talking point for digital assets. Facebook has relaxed its policy on cryptocurrency advertisement in anticipation of launching its own stablecoin. Jack Dorsey’s payment platform Square also announced cryptocurrency adoption to be “inevitable,” giving an indication of the shifting sentiment towards Bitcoin compared to a year ago.

Disclaimer: Investing in cryptocurrency is inherently risky.

The post Brian Kelly Talks Bitcoin (BTC) ‘Halvening,’ Gives Portfolio Recommendation appeared first on Ethereum World News.

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Upcoming Supply Cut Will See Bitcoin Prices Rise Further, Brian Kelly Predicts

Crypto analyst Brian Kelly believes bitcoin prices are going to rise as increasing demand competes with diminished supplies.

An upcoming supply cut could help bitcoin (BTC) prices rise further in the coming months, crypto fund manager Brian Kelly told CNBC on May 21.

Speaking to the Fast Money program, he explained that “the halvening,” next due to take place in 2020, will see mining rewards cut in half.

With many miners now hoarding BTC, Kelly predicted that prices will rise as increased demand — tied to increasing industrial adoption and retail uses — competes with diminished supplies.

Describing the four-year cycle that leads up to “the halvening,” Kelly added:

“You generally have a rally a year into it, and a year out of it. And so we’re just at the beginning of that stage […] a supply cut is generally bullish.”

He recommended investors dedicate between 1% to 5% of their portfolio to cryptocurrency while prices are stuck around the current levels of $8,000.

Earlier this month, reports suggested that investment firm Fidelity was planning to roll out BTC trading for institutional clients in the coming weeks.

Meanwhile, well-known retailers and brands such as Nike have been beginning to explore how crypto could fit into their business models.

Other analysts believe there are other factors behind BTC’s recent surge. On May 20, Digital Currency Group founder Barry Silbert suggested the crypto’s bounce back could be linked to the ongoing United StatesChina trade war.

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Bitcoin (BTC) Rolling Back Losses, Bulls Stand a Chance As Sentiment Change

Bitcoin

After another Tether (USDT) related scandal triggering a
mini-crash, Brian Kelly, the CEO of a digital investment firm BKCM
LLC
says he is a crypto optimist. As an experienced analyst who is “generally right
about 60 percent of the time
“, his outlook is upbeat and is sensing
opportunity despite repeated challenges.  With this, the “The Bitcoin Big Bang — How Alternative Currencies Are About to Change
the World
” author has reasons to believe that Bitcoin is 50 percent
undervalued and that while prices may dip, the dreaded bear market is over.

Of the massive market walkouts,
in an exclusive interview with CoinTelegraph, Brian said:

The sellers that we’ve seen recently are almost forced sellers. Some CEOs had to raise cash because they say they “can’t hold it in crypto all the time.

All the same, Brian is not the
only the one with such strong sentiments regarding Bitcoin’s undervaluation. Fundstrat Global Advisors’ Thomas Lee, a Bitcoin perma-bull
may have gone overboard about Bitcoin’s ability to rally beyond the $25,000
mark in 2017, eating humble pie, but he is as optimistic as ever. Then, Lee
projected Bitcoin’s fair value at around $14,800 but prices crashed below this
mark, tanking to as low as $3,200 in Dec 2018.

Read: Tether (USDT) Losing 30% Of
Its Market Cap A Blow, BitConnect Tokens?

Lee reckoned that as BTC’s acceptance as an asset class, and
adoption by a more considerable quotient of consumers, would push the token’s
price sky high. Then, he told Bloomberg
that “If bitcoin wallets approach
just 7 percent of Visa’s 4.5 billion account holders, fair value would be
$150,000 per Bitcoin
“.

Lee has however declined to place another Bitcoin (BTC)
price prediction. Even so and true to his word, Bitcoin adoption is on an
uptrend and coupled with positive development as Bakkt and a possibility of a
Bitcoin ETF approval for instance, the future is bright. Bakkt, if it gets the
nod from the CFTC, would offer digital assets exchange services to
institutional investors via physically backed Bitcoin Futures, open doors for
investment.

Bitcoin (BTC) as a Gold Alternative

Brian Kelly has intimated that global trade players are
beginning to use Bitcoin as a Gold alternative or a hedge against the average
volatility and fluctuations inherent in fiat. Why? Because BTC is not as stable
as gold, yet its value is uncorrelated; the perfect recipe for high returns.

But perhaps one of the most outlandish price predictions
made concerning BTC undervalued price was made by John McAfee of McAfee Labs.
At BTC’s peak prices in 2017, McAfee claimed that the token would hit $500,000
in three years and later even upped that value to $1 million per BTC before
2020 ends. McAfee was so bullish on BTC he made a statement to the effect that
he would serve bits of himself on national TV if his prediction were
wrong. 

The value of an item is much dependent on the laws of supply
and demand. While BTC’s supply is capped and most of it mined its demand has
been primarily affected by the perception relayed by hurts and boosts from news
items revolving around it.

Also Read: Forget The FUD, Fundstrat’s
Tom Lee Sees New Bitcoin (BTC) Highs In 2020

There, however, is a lot of positivity around the coin right
now, and if the long-awaited Bitcoin ETF is approved, a new vista for the
world’s most valuable coin could emerge. The coin’s volatility most analysts
say is the nature of all fast growth product cycles. Regardless, analysts warn that
BTC’s past, despite tendency of repetition, does not in any way predict its
performance in the future. Bitcoin’s final position as a unique holder in
creating a secure internet value is on the rise and at current rates, we cannot
discount possibility of its value stemming directly from its role as a trillion-dollar
settlement layer.

The post Bitcoin (BTC) Rolling Back Losses, Bulls Stand a Chance As Sentiment Change appeared first on Ethereum World News.

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Brian Kelly Says Next Target for Bitcoin is $6,000, With Crypto Markets Bottoming

Cryptocurrency bull Brian Kelly has predicted that the next Bitcoin target is going to be $6,000.

Brian Kelly, the founder and CEO of digital currency investment firm BKCM LLC, said that the next Bitcoin (BTC) target is going to be $6,000, CNBC reported on April 2.

During an interview on CNBC’s “Futures Now” show, Kelly stated that “probably a reasonable target [for Bitcoin] is close to $6,000 for this move.” Kelly’s statement comes in the wake of a price surge elast night when the leading coin skyrocketed by over 15 percent and broke the $5,000 price mark for the first time since last November. Kelly suggested that the cryptocurrency market is finding its bottom:

“All indications that we have — whether it be fundamentals, technicals, the quantitative analysis we do — all suggest that we probably have at least started to put in the bottoming process. […] What’s interesting about this move is it’s happening on improving fundamentals and improving institutional sentiment.”

Kelly further supposed that institutional investors are one of the main drivers of the cryptocurrency price upturn, saying:

“Even high net worth individuals, family offices, are starting to take a serious interest. There’s a couple major brokerage firms that are rolling out some custody solutions. So there’s quite a bid going on under the surface.”

According to CNBC, the price surge reportedly followed a 20,000 BTC buy across multiple exchanges, or 0.11 percent of the total Bitcoin supply of 17,620,525 BTC at press time.

In February, Kelly said in an interview with Cointelegraph that Bitcoin was 50 percent undervalued at the time. Kelly, however, added that he would not be surprised if Bitcoin went to $1,500 for a short term.

Last month, Arthur Hayes, another cryptocurrency bull and CEO of digital currency trading platform BitMEX, predicted that Bitcoin will get back to the $10,000 price point this year. According to Hayes, the market recovery will begin in early fourth quarter of 2019:

“The 2019 chop will be intense, but the markets will claw back to $10,000. That is a very significant psychological barrier. […] $20,000 is the ultimate recovery. However, it took 11 months from $1,000 to $10,000, but less than one month from $10,000 to $20,000 back to $10,000.”

At press time, Bitcoin is trading around $4,790, having gained more than 15 percent over the past 24 hours, according to CoinMarketCap. The coin peaked to $4,849 in the middle of the day, before dropping slightly and trading sideways at press time.

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Are The Bitcoin Bulls Back? Brian Kelly Weighs In

As reported by Ethereum World News, the cryptocurrency market has been on a surprising tear over the past 24 hours, with a majority of assets posting gains of upwards of 6-7%. At the time of writing, Bitcoin stands at $6,400 after a brief step over the $6,500 line, while a majority of altcoins have seen a return of upwards of 5%. Some altcoins, like Nano, have had an astounding day, with bulls pushing the price of the cryptocurrency up by 25% or more.

Although the cryptocurrency market may have been on thin ice before this recovery, the ice isn’t so thin now, with Bitcoin establishing lines of support at higher lows.

On Wednesday, Bria’s “Fast Money” segment covered this recovery, with Brian Kelly, CNBC’s in-house crypto analyst, doing his best to reason why the market saw such a strong rebound.

Kelly opened up his section calling the market’s price action a “wild ride,” alluding the trials and tribulations the market has faced over the past few weeks. The analyst went on to draw attention to the performance of BTC before, during, and after the expiry of CBoE-based Bitcoin futures. According to statistics which CNBC has attributed to Justin Stanislaw, Bitcoin often does poorly in the days leading up to an expiry date, but sees a 10% move upwards in the week following a futures expiry.

Likening today’s expiry to a similar occurrence, Kelly noted that following the April futures expiry, Bitcoin saw a 20% gain in a mere 6 days. While not explicitly stating it, it’s clear to see that founder of the crypto-centric BKCM fund is expecting for Bitcoin to continue to experience positive bouts price action over the next few days.

To add fuel to the metaphorical bullish flame, Kelly, who has become a near-notorious permabull, added that Bitcoin may be undergoing a short squeeze, as shorts cover their losses in this potential trend reversal.

This sentiment sparked a question from another CNBC panelists, who asked if “these other cryptocurrencies” will bottom out along with Bitcoin. Kelly responded, stating:

They (altcoins) are still quite correlated (with Bitcoin). Over the last 60 days or so, Bitcoin has really been the leader — a lot of that had to do with the speculation about an ETF. But what you did see today is stuff like Ethereum almost 10% off yesterday’s lows, stuff like Stellar Lumens — still holding up quite well. So yes, if you get a 10 or 15 percent run on Bitcoin on a short squeeze, it should bring everything else back up.

So as is normally the case, it is likely that if Bitcoin runs, so will a majority of altcins, albeit with some variance in either the bullish or bearish direction.

However, some had their doubts, including CNBC trader Dan Nathan, who queried Kelly on if the capitulation phase of the market has “petered out.” Turning the question somewhat on its head, the cryptocurrency bull noted that $5,900 may prove to be a level of support if a sell-off continues. Nonetheless, it seems that with this episode of CNBC Fast Money passing by, Kelly remains as bullish as ever.

While some were quick to cast Wednesday’s bout of positive price action aside, calling it a classic bull trap, there are some optimists who are convinced that this might be the beginning of the end of the crypto bears.

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Selling Bitcoin Because of ETF Delay is a Wrong Decision, Says Brian Kelly

Cryptocurrency trader and CEO of BKCM LLC, Brian Kelly, has faulted investors who are jumping on the selling bandwagon to dump their Bitcoin in the wake of the latest SEC decision to postpone the approval of yet another ETF.

ETF Rumour Contributed to Bitcoin Price Rally in July

Speaking to CNBC on Tuesday, shortly after the decision by the SEC to delay the VanEck/SolidX ETF, Kelly advised traders not to get caught in the frenzied panic that usually follows such news. According to Kelly:

Bitcoin has had a tremendous run off of $5,800, and that was all really because people thought there was going to be a Bitcoin ETF. The SEC came out and postponed that decision.

In the aftermath of the decision, BTC price went downhill, even reaching $6,100. However, Kelly believes it is a poor investment choice to panic sell because the SEC delayed another Bitcoin ETF. According to Kelly, there is more going on beyond the prospect of a BTC ETF. In fact, the BKCM chief doesn’t think there will be an SEC-approved Bitcoin ETF in 2018.

A little spoiler alert, on September 30, SEC will likely postpone it again, because the market is not ready for it and the SEC hasn’t had the answers to their questions yet.

A lot of the SEC’s reticence on the matter is based on a few fundamental issues with the market. Questions over custodial tools, lack of liquidity, and allegations of price manipulation continue to trail the market.

Reasons for the Ethereum Classic Price Surge

In another development, Ethereum Classic (ETC) has been enjoying a significantly great run over the last few weeks. The 13th-ranked cryptocurrency is up by almost 30 percent over the previous 30 days. According to Kelly, this price rally is due to an increase in the crypto’s adoption namely by Robinhood and Coinbase.

Earlier in the year, Coinbase, the largest cryptocurrency exchange platform in the United States announced that it was considering adding ETC to its trading catalog. In August, the platform finally launched ETC on its institutional trading desk with plans to launch the coin on its retail side as well in the coming weeks.

Robinhood, the Menlo Park-based based crypto trading platform also announced the addition of ETC to its trading platform as well. According to Kelly, these additions have created the first meaningful institutional access to Ethereum Classic, hence the massive price surge.

Do you agree with Kelly’s comments about not selling Bitcoin after the SEC decision? Keep the conversation going in the comment section below.

Image courtesy of Coinmarketcap.

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Bitcoin Price is Set for Another Breakout, Says ‘Wall Street’s Crypto King’

For the third day in a row, Bitcoin continues to trade below the $8,000 mark that it has gained in July 2018. A flurry of events beginning with the Winklevoss ETF rejection by the SEC has seen the price of the top-ranked cryptocurrency take a considerable tumble. However, a couple of experts believe that another price breakout is imminent.

Bitcoin Needs Higher Highs and Higher Lows

Speaking to CNBC, Bart Smith, the head of digital assets at Susquehanna said that Bitcoin needs higher highs and higher lows. According to Smith, $6,800 is probably the bottom for BTC, and that value needs to go higher to give the crypto a bigger upward bounce. Speaking on the state of the market, Smith also said:

A lot of traders see the $6,800 level is something it needs to break through. We have lower highs and lower lows, and we need to break out of that. You look forward to a new bitcoin ETF coming out, and there is a lot of enthusiasm. The price goes all the way up to $8,400. The ETF gets rejected, and it goes down again. We need to see higher highs and higher lows, so the continuation to breakthrough and hold at $7,500 and bounce higher.

Smith, popularly referred to as the ‘Crypto King of Wall Street,’ also commented on the next step in the evolution of the Bitcoin market. The Susquehanna chief said that big name brands need to enter the market to provide an incentive for more institutional players to put up equity in BTC futures.

Significant Events in Q4 2018 Might Spark Bitcoin Price Rally

For Brian Kelly of BKCM LLC, Q4 2018 might be an exciting time for the top-ranked cryptocurrency. According to Kelly, the emergence of robust custodial tools for cryptocurrency are probably four to six months away. Speaking also to CNBC, Kelly said:

We are in an environment where there’s lots of regulation, and this is the best opportunity to get something new through. The iron is hot; it’s time to strike. You have to remember, Bitcoin can move five percent on any given day so. While it may seem crazy to the legacy market, in the Bitcoin world, this is just a normal correction.

At press time, Bitcoin was trading at $7,600 after a quick drop a few hours ago to $7,500.

What do you think about the comments of Bart Smith and Brian Kelly? Keep the conversation going in the comment section below.

Image courtesy of Business Insider and Coinmarketcap.com

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3 Reasons Why the Bitcoin (BTC) Rally is Here to Stay According to Brian Kelly of CNBC’s Fast Money

The total crypto market capitalization has surpassed the $300 Billion mark and is currently valued at $301.5 Billion. With the increase in volume of the crypto markets, Bitcoin (BTC) has broken past two recently stated resistance levels of $7,600 and $8,000 in quick succession and in a period of less than a week. The King of Crypto is currently trading at $8,310 and looks set to get to $10,000 by the time August rolls by.

With the increase in value of BTC comes the question of whether the current Bitcoin rally will continue into the rest of the year. Many crypto-traders have been treading cautiously as they too are not sure if this is an official bull run or the feared bull trap.

Brian Kelly, a regular contributor on CNBC’s Fast Money offered his insights as to why the Bitocin rally is here to stay. To begin with, Kelly stated that the current Bitcoin ETF frenzy is one of the driving forces of the current market excitement. Many traders believe that the SEC decision will be made around the 16th of August but Kelly believes that the chances of the Bitcoin ETFs being approved in 2018 are very slim. He stated that:

The chances of an ETF in 2018 are relatively low…but that does not stop the speculation on that. And that is one reason why we have seen this bottoming process to $5,800 all the way up here

A second reason the Bitcoin rally is here to stay according to Brian Kelly, is the interest of the crypto markets by institutional investors. He added that:

Institutions are starting to get serious. I can tell you from the calls I am getting. People who looked at [BTC] in December did not like the price. They are coming back now and saying, ‘Alright this thing is not going away. We need to understand what it is.’

The third reason why the current Bull run will continue, is that the said Institutions have acknowledged what is known as ‘Web 3.0’. Kelly described Web 3.0 as follows:

Web 3.0 is the new Internet, an improved Internet, with data that can be monetized. How do you send something of value across an open network like the Internet? With a cryptocurrency, and that is exactly why institutions are starting to get into this [bitcoin]. They’re seeing how this fits into a portfolio of Web 3.0 stocks.

In conclusion, even thought leaders such as Brain Kelly believe that the current Bitcoin rally is here to stay.

Disclaimer: This article is not meant to give financial advice. It is an opinion piece. The opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.

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Bitcoin Price Rally Might be Temporary

While BTC permabulls are no doubt happy to see Bitcoin prices recover from a slight dip, one expert believes the increase is only temporary. Spencer Bogart is of the opinion that a coming forced selling will most likely cause prices to decline even further.

Forced Selling by Crypto Hedge Funds May Drive Prices Lower

Spencer Bogart. Credit medium.com/@Bitcom21

Speaking to CNBC, yesterday (June 25, 2018), Bogart said that though he was “super bullish” on cryptocurrency at the moment, another significant price dip was imminent. According to Bogart, many of the cryptocurrency hedge funds established in 2017 are nearing their “one-year lock up.” Bogart argues that with the market declining by more than 50 percent since the start of the year, many liquid providers will be looking to sell. Liquid providers act as intermediaries between brokers and virtual currency exchange platforms. He went on to say:

They’re saying, ‘hey, I want to redeem out of that fund. That means forced selling on behalf of all of these new crypto funds that have popped up. I think that could take prices artificially lower.

2017 saw a massive spike in the number of cryptocurrency hedge funds. Spurred on by the meteoric rise in the price of many major crypto species, these funds have declined somewhat during the “cryptocurrency winter” of 2018. According to Bogart, many fund investors will be looking to count their losses by making forced sales of their holdings. Massive BTC selloffs usually result in significant price drops.

Bogart also had some useful advice for people looking to enter the market, saying:

Most people that are going to wait for lower prices will end up paying higher prices than they are today. So, I think the right move is not to try and time the market and try and average into it.

Spencer Bogart is a partner at San Francisco-based VC firm, Blockchain Capital. The firm focuses on supporting cryptocurrency/blockchain technology startups.

Bitcoin Has Bottomed

Brian Kelly / Courtesy: CNBC

In a related development, Brian Kelly of BKCM LLC believes that Bitcoin may have reached a new bottom. Speaking also to CNBC, Kelly referred to the previous BTC price dip that saw the top-ranked crypto slip below $6,000 on June 25. According to Kelly:

We saw bitcoin hit new lows; I think we went to $5,779. And then within about 10 or 15 minutes, you had a huge ramp up, hundred, two hundred points, and that’s typically the action that bitcoin has shown at bottoms.

Kelly also revealed that the present BTC mining cost was somewhere in the $5,900 region. Thus, miners are incentivized to keep prices above that level or risk incurring significant losses.

The BKCM chief went on reveal that it was still early days as far as knowing the future BTC price trajectory. He, however, noted positive signs such as increasing demand from Asia as well as the latest $250 million worth Tether that was printed on June 26, 2018.

Do you think the scheduled selling by crypto hedge funds will cause BTC prices to tank? What are your opinions on Kelly’s Bitcoin bottom analysis? Keep the conversation going in the comment section below.

Image courtesy of Ethereum World News archives and CoinMarketCap.

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CNBC’s Brian Kelly: Current Bear Trend ‘By No Means’ Funeral for Bitcoin

The current bear market is not a funeral for Bitcoin (BTC) “whatsoever,” CEO of BKCM LLC investment firm Brian Kelly said on CNBC’s Fast Money segment June 22.

To back up his statement, Kelly provided three key factors. First, he pointed out that the market sentiment is “approaching lows,” implying that a trend reversal is likely to follow.

Bitcoin, trading at $5,881 as of press time, has been in an almost continuous decline since hitting its all-time-high of $20,000 in December 2017.

Chart

Bitcoin price chart. Source: Cointelegraph Bitcoin Price Index

Despite that, Kelly called attention to the fact that Bitcoin is still trading at the same level as back in November 2017, whereas a year ago its value was 60 percent lower – around $2,500.

Next, Kelly mentioned the recent news that Japan’s Financial Services Agency has sent out business improvement orders to 6 domestic exchanges. He pointed out that while in the short run it’s going to be “a little tough,” in the long run it will help make the exchanges more “robust.”

Third, Kelly brought up the announcement by Mt. Gox to reimburse its customers and begin civil rehabilitation proceedings, following the $473 million hack in late 2013 and the resulting bankruptcy. Mt. Gox was considered to be the largest hack in the history of crypto, until this year’s $534 million Coincheck hack.

On June 5, Cointelegraph reported that Bitcoin has been declared “dead” for the 300th time, according to the 99Bitcoins “obituary list.” By press time, the cryptocurrency has “died” 315 times, with 69 “deaths” taking place this year alone.