CNBC put Bitcoin in sight: The last time it was a unfortunate signal for BTC
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CNBC put Bitcoin in sight: The last time it was a unfortunate signal for BTC Buybitcoins.site

CNBC put Bitcoin in sight: The last time it was a unfortunate signal for BTC

The recent price increase of Bitcoin and the upcoming halving have brought media attention. CNBC recently explained the upcoming halving and made a bold prediction claim that BTC could spike.

CNBC BELIEVE THAT BITCOIN WILL INCREASE

Bitcoin appeared on CNBC's Fast Money on Friday after a recent rally. Crypto-friendly expert, Brian Kelly, gave his opinion on the current situation and explained about halving:

When the whole world is quantitative easing (QE), Bitcoin is about to be hard quantified. That doesn't mean the price of the asset will be cut in half, just that the daily supply is cut in half.

In the past, this was a catalyst for very large races. But think mid to long term, now you have a scarier asset than gold based on stock ratio (S2F) in an environment where the whole world is printing money.

Recalling again the fact that Bitcoin miners will receive less than half the reward after halving occurs, he added that weak miners could stop working. However, Kelly predicts that after thirty to sixty days we can see a big Bull tremor.

QUANTITATIVE QUARTER Vs MAKING QUANTITY

Kelly also makes comparisons between quantitative easing and quantitative hardening. The US government recently committed to ' unlimited ' quantitative easing after lowering interest rates to 0.

Quantitative easing involves buying a pre-determined amount of government bonds or other financial assets to add money directly to the economy.

However, an increase in QE could easily lead to currency depreciation. Renowned American economist, Peter Schiff, recently predicted that unprecedentedly high levels of money printing could cause hyperinflation.

On the other hand, quantitative hardening works exactly the opposite. It reduces the liquidity brought to market over time by reducing the daily supply. According to basic economic principles, if demand stays the same or increases, while supply decreases, the value of assets, in theory, will increase.

And this is where Bitcoin came in.

 BITCOIN HALVING

Bitcoin's total supply is limited to 21 million. Furthermore, every four years, the rewards miners receive when adding new blocks to its network will be cut in half, thereby reducing the supply of new bitcoin minted to the market and reducing one half of inflation rate.

Now the inflation rate is approximately 3.64% and after the next third halving, it will drop to 1.8%.

Kelly also noted that after the previous two events, the price of Bitcoin actually skyrocketed. This caused a lot of speculation in the community that history would repeat.

Of course, the overall economic environment this year is particularly different from 2016 and 2012. The spread of the coronavirus pandemic (COVID-19) is dangerous and major economies are slowing down due to gia is closed.

DOES THE COMMUNICATION HAVE ANY ADVANTAGES ON ADVANTAGES TO CASH?

Bitcoin, and most of the cryptocurrency market, was over-reported by traditional media giants during the parabolic rally in 2017/2018. Kelly himself has made some bold claims in the past, saying that he will continue to buy Bitcoin for $ 20,000. In the following months, BTC lost 85% of its value compared to its all-time high.

Another example includes Ripple's XRP. Kelly compiled a guide on how to buy it at the time, the report made serious statements like XRP as one of the hottest new cryptocurrencies and it only cost more than $ 2 a penny. .

Such reports could prompt retail investors to buy immediately, which could push prices even higher. Instruction to buy XRP was posted on January 2, 2018 and just a few days later, the asset reached ATH. However, what follows is a rapid and painful decline. A month later, XRP dropped 82% to $ 0.57 and in August, it dropped to $ 0.23. 

XRPUSD 1D.  Source: TradingView
XRPUSD 1D. Source: TradingView

In any case, the mass media is drawing attention to the cryptocurrency market, but it's still questionable if that is the exact attention it needs. In February, Bitcoin again became the focus of CNBC's attention and then a mass sell-off caused its price to drop to $ 3,600.