- CEO of BKCM, Brian Kelly predicts that altcoins will rally in January, after Bitcoin’s current surge.
- Ethereum, Solana, Cardano, and Polkadot may be the best-performing projects when this happens.
- The current “macroeconomic tailwind” favors risk assets like bitcoin and Gold, Kelly says.
- Bitcoin will surge again, after the halving in April 2024
Bitcoin has been performing very well as of late. The cryptocurrency has managed to break above the $43 resistance and is a market leader indeed.
Bitcoin has even broken the market caps of several major companies including Meta, Berkshire Hathaway and Tesla, and is poised to beat Nvidia’s very soon.
However, it has failed to drag most of the altcoins along with it.
According to data from Blockchain Center, we are more inclined towards a Bitcoin season than an altcoin season.
However, Brian Kelly believes that this might be about to change.
An Incoming Altcoin Season
Brian Kelly, the founder and CEO of BKCM, was interviewed on CNBC’s Fast Money.
In this interview, Kelly shared a few insights as to the fate of altcoins. According to the CEO, he expects a full launch into an altcoin season in January 2024, after Bitcoin’s rally.
According to Kelly, altcoins typically pick up speed a month after bitcoin moves. This might be due to investors taking profits on Bitcoin, and then diversifying their portfolios by buying the altcoins.
“We saw Ethereum breakout [Sunday] night and then Solana and then it starts to go down the list and so that’s what I would anticipate. Let’s call it January or so.”
This pattern, Kelly explains, has been observed in previous bull cycles when Bitcoin would lead the way and then the altcoins would follow suit.
In particular, Kelly mentions the likes of Ethereum, Solana, Cardano and Polkadot as likely candidates for a potential rally.
He describes them as “some of the most popular and innovative platforms in the crypto space”
The Macro Tailwind
According to Kelly, crypto is currently rallying because of a “macroeconomic tailwind” that is favouring risk assets like Bitcoin.
Kelly posits that the changing liquidity conditions around the world are changing, as the FED and other agencies continue to ease their monetary policies and interest rates.
“The Fed’s probably done. Europe has got a real problem on their hands. China’s got a massive problem on their hands, and Japan is unlikely to tighten. So when I look at global liquidity, I think, Yeah, gold, Bitcoin, both of them are going to do well in this environment.”
According to Kelly, this kind of environment makes things easier for crypto and gold to do very well as a hedge against inflation.
The Halving Effect
Finally, Kelly predicted that just as Bitcoin has always done after each halving event, the cryptocurrency will enter a rally after April 2024.
The halving of Bitcoin’s block rewards is expected to significantly change the supply and demand dynamics of Bitcoin. Cryptocurrency will become more scarce, and with this scarcity, price surges will follow.
“What we’ve seen historically is that the 12 to 16 months after a halving is the best performance of Bitcoin.
But what it does is make Bitcoin more scarce than gold. So for the first time in history, you have an asset that is more scarce than gold.”
According to Kelly, this scarcity factor could drive the price of Bitcoin to new heights, as demand explodes from both institutional and retail investors.
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