- CNBC’s Brian Kelly predicts that the price of Bitcoin will rise to $20,000 in 3 to 6 months and to $50,000 in 2021.
- Kelly argued that Bitcoin has better fundamentals than gold to drive a rally that will allow BTC to surpass its all-time high.
In an interview for CNBC’s show “Fast Money”, Brian Kelly took a bullish stance to make a prediction about Bitcoin’s (BTC) price. Kelly, the founder of a crypto investment fund BKCM LLC, said that Bitcoin will reach its all-time high of $20,000 within the next 3 to 6 months. For next year, Kelly is even more optimistic and puts the cryptocurrency at $50,000.
Gold versus Bitcoin (BTC) – Fundamentals will be decisive
Kelly affirmed that his opinion is not biased due to the share on his crypto investment fund. On the contrary, the investor affirmed that Bitcoin has better fundamentals. One of the fundamentals that Kelly named is the stock-to-flow ratio. Compared to gold, Kelly said, Bitcoin’s is much more scarce after the halving. In addition, he stressed the historically high importance of the halving as a catalyst to drive Bitcoin’s bullish cycles:
The stock-to-flow ratio is better than gold at this point because we had the halving. And, when I look at Bitcoin cycles, bull markets tend to cluster around halvings. So, we’re on our way to a bullish cycle like 2016. And that implies that somewhere in Q2 of 2021 you have a Bitcoin price of $50,000.
The investor also highlighted the importance of Bitcoin’s recent break beyond the extremely important resistance of $10,500. Every time this happens, Kelly said, an asset keeps going up. This is part of what he called “trading 101”, as Kelly stated:
Bitcoin looks like gold, but 2 to 3 times bigger than gold. Will gold go to $4,000? Will it go to $10,000?
The investor also defended his prediction by highlighting the performance of the cryptocurrency during 2020. Since the collapse of the market due to the “Black Thursday,” caused by the spread of the Covid-19 pandemic, when Bitcoin traded at $3,500, the cryptocurrency has tripled in price. However, he also noted that Bitcoin investors can rarely predict the movements that the cryptocurrency will make:
A lot of the investors who had $1,000 or $2,000 in Bitcoin in 2017, didn’t think it would reach $20,000. We know that Bitcoin is extremely volatile, it’s highly speculative, and when you go into these speculative rallies, it goes beyond what people think.
After Kelly made his prediction, another member of CNBC’s Fast Money team, Guy Adami, raised his voice and contradicted Kelley. When choosing between gold and Bitcoin, Adami chose the first option and repeated the name of the precious metal several times.
At the time of publication, Bitcoin’s price stands at $11,100 with a 0.38% gain in the last 24 hours. In the monthly and weekly charts, Bitcoin is showing gains of 20.81% and 17.66% respectively. Conversely, gold is at $1,956 with a gain of 9,9% over the last 30 days.
Below is an excerpt from the interview with Brian Kelly:
— CNBC's Fast Money (@CNBCFastMoney) July 27, 2020