Brian Kelly, Founder of Investment Firm BKCM and CNBC Contributor, believes that Bitcoin is on its way to new all-time highs. His beliefs are based on the upcoming Bitcoin halving in late May 2020.
On the Fast Money segment, Brian Kelly stated that this is a Bitcoin resurgence and the December 2018 lows in the $3,000s are probably the lows. His reason for believing this is that one of the metrics he uses, active addresses, are up 26% since the January lows. He also points to the fact that Fidelity is rolling out their institutional platform and the CME Bitcoin Futures reached near record volume last week.
“I think there’s a really good chance that the December lows we saw in the $3,000s are probably the low for this cycle. There’s a couple things that are going on. You’ve seen improving fundamentals. You look at active addresses. That’s one of the big metrics I look at. That’s up 26% from the January lows. You look at transaction levels. Those are back to 2017 levels, so there’s a lot of network activity. Then you look at who’s buying this. You’re seeing people like Fidelity still rolling out their institutional platform. And then, as a proxy, look at the CME Bitcoin futures. The large open-interest holders. So these are big institutions, those are at all-time highs. And it continues to grow. Last week they saw record volume on CME Bitcoin futures. So you’re starting to see institutional investors come in here with a good fundamental tailwind. And that’s got Bitcoin back in the saddle again.” -Brian Kelly
We are about one year from the next Bitcoin halving and based on past data, Kelly believes that about a year before until the following year. During that time period, there is a higher chance for an upswing in price. His belief is that if institutions come in, it will surpass all-time highs.
“Without question – this next cycle. You’re talking probably a two-year cycle. In 2020, the supply of Bitcoin is going to get cut in half. The cycle for Bitcoin is usually about a year before to a year after. So over this two-year period, you will likely get this big upswing, particularly if the institutions come in, and I think we surpass all-time highs.” -Brian Kelly