TL;DR
- Reduction in selling pressure after the fourth Bitcoin halving.
- Potential income from institutional investors such as Morgan Stanley and UBS.
- Perspectives on BTC as a safe haven asset and its relationship with geopolitical events and monetary policies.
Bitcoin (BTC) has been a central topic in recent financial discussions, particularly following its fourth halving, and Brian Kelly, CEO of Brian Kelly Capital, has provided valuable insights into its future on CNBC’s “Fast Money.”
Kelly noted that although the halving reduced Bitcoin’s daily selling pressure by half, from approximately $60 million to $30 million, this change would not have a significant immediate impact on its price.
However, he highlighted that the psychological effect and the narrative around the four-year halving cycle could influence the market more.
One crucial aspect Kelly highlighted was the potential entry of institutional investors, with major firms such as Morgan Stanley and UBS laying the groundwork to allow their clients to invest in Bitcoin.
This move could mean the arrival of a considerable amount of capital into the cryptocurrency market, which could influence the prices of Bitcoin and other major cryptocurrencies.
Regarding the idea of Bitcoin as a safe haven asset similar to gold, Kelly noted that this transition process could take between 10 to 20 years, highlighting that Bitcoin is still in the early stages of its adoption curve.
However, he mentioned that the Bitcoin reaction to geopolitical events has been mixed
Demonstrating a correlation with gold on certain occasions but displaying adverse reactions to various events, such as the ongoing conflict between Israel and Iran.
Regarding monetary policies, Kelly suggested that Bitcoin could become more attractive as a non-sovereign store of value if the US Federal Reserve tolerates higher levels of inflation to manage the debt-to-GDP ratio.
In such a situation, Bitcoin could potentially serve as a hedge against the diminishing purchasing power of fiat currencies, providing investors with a store of value that is independent of government monetary policies.
Finally, Kelly mentioned investment alternatives within the crypto world, such as Ethereum, Solana and shares of BTC mining companies, thus giving investors a broad view of the opportunities available in the cryptocurrency market.
