Joe Kernen, the co-host of CNBC’s business program Squawk Box, hinted today that the upcoming Bitcoin halving might bring the price to $55,000 by May 2020.

Although Bitcoin has lost 30% of its value after reaching reaching a new yearly high of $13,800, Squawk Box’s Joe Kernen seems to expect the BTC price to surge to $55,000 by May next year.

Today, While co-hosting Squawk Box, Kernen asked Katie Stockton, the program guest, if she believed that it is possible for Bitcoin to hit $55,000. Stockton, founder and managing partner at Fairlead Strategies, a technical analysis firm, seemed shocked by the number.

Kernen however, tried to explain why he believes that $55,000 is possible with the upcoming Bitcoin halving. The conversation between Kernen and Stockton:

Kernen associates the potential bullish rally with the next halving of Bitcoin, which is estimated to occur at around May 2020. When that happens, miners will receive 6.25 BTC per block instead of 12.5.

The last halving took place on July 9 2016. The Bitcoin block reward then also got cut by 50%, from 25 BTC to the current level of 12.5 BTC. After the halving, Bitcoin started a sharp rally that, with some corrections in between, brought the cryptocurrency to the all time high of $20,000 in December 2017.

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