CNBC Predicts Bitcoin to Surpass Gold Scarcity as BTC Hits $43,000
In one of the recent videos, CNBC’s Fast Money trader, Brian Kelly, sheds light on the potential impact and nuances surrounding Bitcoin. Kelly highlighted that the next Bitcoin “halving” remains on track for April, when the built-in code will cut block rewards issued to miners in half. He still argues that halving will limit new supply as Bitcoin becomes scarcer than gold.
Talking about the period after the halving, Kelly mentioned that the 12 to 16 months after past halvings marked Bitcoin’s strongest four-year cycle performances.
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Key Takeaways from Kelly’s Bitcoin Halving Discussion:
- The upcoming April halving will cut daily Bitcoin mining issuance by 50%.
- Kelly thinks halving retains bullish influence despite cycle differences.
- Bitcoin will be more scarce than gold in terms of new supply after halving.
- Cites past halving-related performance as the basis, though admits higher peaks add uncertainty.
We now only have, I think it’s 900 Bitcoin a day that come out, so that gets cut in half. It’s not a lot of Bitcoin, but what it does do is it makes Bitcoin more scarce than gold.
Kelly said
Kelly highlighted that only 900 coins will be issued daily after halving, making BTC more scarce. The reduced issuance of new Bitcoins, a consequence of the halving, typically creates a supply shock. He suggested that it could lead to increased demand and, consequently, upward price movements. However, Kelly voiced concerns about potential differences this time around, primarily driven by Bitcoin’s current high valuation.
The Fast Money trader explained this shift by introducing the stock-to-flow ratio, a metric comparing the annual production of an asset to its existing supply. In this context, Bitcoin’s reduced issuance results in a stock-to-flow ratio surpassing that of gold, a historic first.
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Bitcoin breaches $43,000
Bitcoin has once again proved its bullish stance, as the coin has surged past the $43,000 level. According to the latest data from CoinMarketCap, BTC has surged from a 24-hour low of $41,421.15 to a high of $43,700 before falling to its current price of $43,444.
The latest data reveals that BTC is up by 4.44% in the last 24 hours and 12.89% in the last seven days. Nevertheless, it is unclear whether Bitcoin is poised to surge higher or exhibit a reversal.
