Home Blockchain101 Bitcoin Crypto Bull Brian Kelly: Bitcoin Miners are Hoarding, Demand Is Rising

Crypto Bull Brian Kelly: Bitcoin Miners are Hoarding, Demand Is Rising

5 min read
0
2
150

Bitcoin miners have sold enough BTC to keep their operations going for roughly the next 12 months.

By CCN: Now that the bitcoin price is holding at the $8,000 level, investors are anxiously awaiting what comes next. Bitcoin’s value has expanded by 50% over the last 30 days, but the bulls are currently taking a breather and momentum appears to have stalled.

Crypto fund manager Brian Kelly on CNBC provided some anecdotal evidence that the bitcoin price is only getting started, not the least of which is that miners are reportedly hoarding bitcoin rather than directing it toward total circulation, which is helping to fuel gains in the BTC price.

bitcoin price chart

The bitcoin price has skyrocketed more than 100% year-t0-date. | Source: CoinMarketCap

Kelly explains that he has had discussions with bitcoin miners globally and they have liquidated enough of their BTC rewards to keep operations running for roughly the next 12 months. As a result, they’re “hoarding it.” He explained that miners are saying:

“We are going to hoard bitcoin at this point in time. We’re not going to sell it.”

Embedded video

 

Their timing couldn’t be better considering that bitcoin’s long-awaited halving event is coming up in 2020. As CCN has reported, the bitcoin supply is about to be slashed, which by the code’s design occurs every four years. It means that bitcoin miners’ reward for mining a block will be slashed in half. According to Kelly, the BTC price historically rallies in the year prior to and following the halving event. So the catalysts are two-pronged comprised of rising demand and lower supply, the result of which lends itself to a bullish case for bitcoin. Kelly stated:

“So it’s just real simple economics.”

RETAIL AND INSTITUTIONAL DEMAND FOR BITCOIN

So you’re probably wondering where all the demand is stemming from this bull market. It’s actually a combination of both individual and institutional investor demand, and this has a lot to do with the influx of mainstream players into the market. Fidelity is now custodying cryptocurrency assets for big investors.

On the retail investor front, TD Ameritrade has backed regulated crypto exchange ErisX and it’s only a matter of time before they roll out spot trading to the world – as long as ErisX reaches its milestones.

View image on Twitter

BK’S 2 SATOSHIS

Brian Kelly’s advice? Buy it now and don’t come crying to him when you miss your window.
“While we’re down at these levels, please size this appropriately. It’s a risky thing. One percent to 5% of your portfolio. And when it goes higher and you buy it at the top, don’t tell BK that ‘I bought too much.” Buy it here.”

Source: https://www.ccn.com/brian-kelly-bitcoin-miners-hoarding-demand

Load More Related Articles
Load More By AtoZcrypto
Load More In Bitcoin

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

China’s Central Bank Crypto Currency Is “Ready”, After 5 Years Development

A senior official at China’s central bank announced at the China Finance 40 Group meeting …