Bitcoin has continued to hold support near $7900-$8000, the altcoins have also held their gains from the month. The total market capitalization of the Bitcoin is above $140 billion.
The price of Bitcoin [BTC] at 3: 40 hours UTC on 22nd May 2019 is $7942.
In a recent CNBC interview, Brian Kelly noted that Bitcoin’s momentum is backed by increased demand and in anticipation of the decreasing supply next year.
Brian noted that the demand for Bitcoin is increasing not only from institutions like Fidelity but also from retail traders with the recent TD Ameritrade progress. Moreover, the design of Bitcoin is moving towards decreasing the supply.
Bitcoin halving is 366 days away. Post the ‘halving’ event, the mining reward for validating a block will reduce by half. Currently, a miner is paid 12.5 BTC for successful validation of a block or ‘a group of transaction data’ together stored in the chain. The reward will be reduced by half next year to 6.25 BTC. Brian noted that,
“I talked to a lot of miners around the world and they said, we’ve sold enough Bitcoin to get us through the next year or so. We’re going to hold Bitcoin [BTC] at this point of time.”
He finally noted that increasing demand and decreasing supply are certain indicators of a higher price in the future. Nevertheless, while he did not provide any targets for the bullish case, he advised investors to fill in 1-5% of their portfolios with Bitcoin; rather now than later.
Do you agree with BK’s fundamental analysis? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com