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

Published at: May 22, 2019

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 States-China trade war.

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