Prominent bitcoin bull from the traditional investment space, Brian Kelly, said on CNBC’s fast money that bitcoin is now trading at levels with minuscule price history.
However, the asset manager cautioned that all those who bought close to the 2017 top might want to off-load the cryptocurrency if bitcoin continues to make new yearly highs.
In Brief
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Bitcoin has only traded above $16,000 for 12 days in its entire history.
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Brian Kelly believes sellers might come in as price approaches $20,000.
Bitcoin surged past $16,000 to tap $16,500 during early Friday trading (CET). By the time you read this, bitcoin might have already made another significant move.
In the interview on CNBC’s fast money, Brian underlined the fact that high profile investors such Stan Druckenmiller entering the space remove the “career risk away from professional investors who want to put it (bitcoin) in their portfolio.”
Speaking about the recently announced digital Euro, Brian outlined that the fiat currency is not competition for bitcoin.
He said: “bitcoin’s core value proposition is that it has a fixed supply. I can’t imagine the ECB issuing a digital currency that has a fixed supply. In fact it will make it a lot easier for them to digitally print more money“.
The coming wave of Central Bank Digital Currencies (CBDC’s) highlights the risks associated with holding too much fiat currency, Kelly continued.
Asked about the highest bitcoin price by the year’s end, Brian believes that the cryptocurrency could grind higher, but expects selling pressure to build as bitcoin approaches $20,000 as 3-year holders offload the crypto.
He said: “Some people that bought in late 2017 – early 2018 will have had a long three years so I wouldn’t be surprised if they would want to get out of it.”
However, the total value of bitcoin is about $300 billion, whereas the total value of all the gold in existence is $10 trillion, noted Brian. If bitcoin is going to disrupt the gold market, which it very well could do, then investors putting down cash into bitcoin are still early when measured by this metric.
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