Bitcoin will be having its next halving in May 2020 and many mainstream financial analysts are already expecting a major price spike. CNBC’s Joe Kernen said on Squawk Box recently that the leading cryptocurrency could hit upwards of $55,000 by then.
Are major financial investors bullish on Bitcoin? It depends on who you ask, but CNBC’s Squawk Box is certainly bullish. Its host recently said that Bitcoin is set to hit a milestone and we could see prices spike to around $55,000.
During an interview with Katie Stockton, founder of Fairlead Strategies, he asked her whether she agreed with this potential prediction. Although Stockton seemed to be unsure, somewhat skeptical even, Kernen seemed to be a believer.
He told his guests that $55,000 is in the realm of possibility, acknowledging that it was ‘hopium’ for the Bitcoin maximalists watching.
Kernen’s prediction is based on a fundamental analysis of gold and silver’s scarcity, and how it should reflect in Bitcoin’s price. Although Stockton believed it to be a joke, Kernen was somewhat serious. However, he also made clear that he was teasing Bitcoin believers and “maximalists,” as he so often does on his show. Bitcoin is set to have its next halving around May 2020 when miners will receive 6.25 BTC per block instead of 12.5. This deflationary built-in function means that Bitcoin will become much scarcer moving forward, and generally has a positive impact on price. Kernen argues that this would be the catalyst for the next major movement upward, pushing the leading cryptocurrency to over double that of its previous all-time high. The prediction is a gutsy one, but not unlike what we’ve heard before. Regardless, it seems certain that the halving will produce a major move upward for Bitcoin. We should keep in mind, however, that historically Bitcoin’s price has moved after the halving event, not before. So, investors should perhaps be looking at the latter half of 2020 for major price movements. Do you agree with Kernen’s bold prediction of $55,000 Bitcoin by May 2020? Let us know your thoughts below.Will bitcoin reach $55k by May 2020? @JoeSquawk discusses #btc with @StocktonKatie pic.twitter.com/r1b5rNhX1s
— Squawk Box (@SquawkCNBC) July 29, 2019
