Connect with us

Bitcoin News

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

Published

on


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.

Like what you read? Give us one like or share it to your friends
original post…

Continue Reading
Advertisement

Bitcoin News

NYSE files a trademark application for trading NFTs

Published

on

By

The world’s largest stock exchange may be planning to bring business into the Metaverse.

Like what you read? Give us one like or share it to your friends
original post…

Continue Reading

Bitcoin News

Traders say $4,000 Ethereum back on the cards ‘if’ this bullish chart pattern plays out

Published

on

By

Global tensions that could trigger a correction in markets abound, but traders say ETH’s current setup could result in a swift return to the $4,000 level.

Like what you read? Give us one like or share it to your friends
original post…

Continue Reading

Bitcoin News

CryptoPunks community reacts to the ongoing copyright battle between V1 and V2

Published

on

By

Although the collection is no longer deemed authentic by Larva Labs, its creators alleged sold 210 ETH worth of CryptoPunks V1 when the wrapped versions first gained traction.

Like what you read? Give us one like or share it to your friends
original post…

Continue Reading

Bitcoin News

Binance.US is under investigation from SEC over trading affiliates: Report

Published

on

By

Binance CEO Changpeng Zhao allegedly has connections to two market makers buying and selling crypto on Binance.US.

Like what you read? Give us one like or share it to your friends
original post…

Continue Reading

Bitcoin News

Boost Insurance unveils product covering against crypto theft from qualified custodians

Published

on

By

Boost Insurance, an insurance infrastructure-as-a-service platform, alongside go-to-market partner, Breach Insurance, a company that provides insurance technology and regulated insurance products for the cryptocurrency market, today announced the launch of Crypto Shield, an insurance product for cryptocurrency available to retail wallet holders.

Crypto Shield covers the theft of cryptocurrency while in the custody of a qualified custodian.

The Crypto Shield product allows individuals to purchase protection for their crypto wallets held by select custodians. In the case that the custodian is breached or suffers a social engineering attack resulting in lost assets, individuals insured under Crypto Shield can be reimbursed for the value of their policy.

Boost + Breach

While there is some commercial insurance available to cryptocurrency institutions, Breach envisioned Crypto Shield as a solution to the protection gap that currently exists for individuals holding crypto, securing a partnership with Boost to assist in bringing the Crypto Shield product to life.

Boost’s insurance infrastructure-as-a-service packages the necessary operational, technological, compliance, and capital requirements for new insurance programs into a white-label solution, enabling insurtechs like Breach to swiftly launch new lines of business.

“Boost’s deep expertise and insurance infrastructure-as-a-service platform, and Relm’s industry-leading crypto reinsurance capabilities, have positioned Breach to bring a highly complex insurance product to the market in a beautifully delivered customer experience.”
– Eyhab Aejaz, Co-Founder & CEO at Breach

To deliver that product in a seamless experience, Boost and Breach’s platforms connect via API, allowing Boost’s policy administration system to deliver back-end management for the Crypto Shield product. Breach’s customers are then able to purchase and manage every part of their policy and claims process, all from within Breach’s proprietary crypto insurance platform.

“With Boost’s infrastructure-as-a-service platform, companies like Breach can launch and deliver innovative new insurance offerings, at a fraction of the time and cost required to build a full-stack insurance program from scratch.”
– Alex Maffeo, CEO & Founder of Boost

In addition to powering the new product, Boost and Breach partnered to source and secure the necessary reinsurance backing from industry expert Relm Insurance Ltd. (Relm), underwritten by Trisura Specialty Insurance Company. Operating out of Bermuda, Relm is a capacity provider to the crypto sector with a track record of insuring companies across the ecosystem. Relm has recently been awarded an ‘A Exceptional’ Financial Stability Rating (FSR) by Demotech.

“Relm’s partnership with Boost and Breach to reinsure the US’s first cryptocurrency insurance product for retail wallet holders is a milestone in supporting the development of crypto and blockchain technologies.”
– Joe Ziolkowski, CEO at Relm

The post Boost Insurance unveils product covering against crypto theft from qualified custodians appeared first on CryptoNinjas.

Like what you read? Give us one like or share it to your friends
original post…

Continue Reading

MONSTERCHOMPERS NFTs
BREAKING NEW GROUND

You must have javascript enabled to view this plugin.

Copyright © 2022 The Crypto Report

You have not selected any currency to display