I first recommended Bitcoin for $459 in 2016, telling readers it had all the qualities to be huge. And huge it is – trading today at $94,008 and heading higher.
A few years ago, when Bitcoin was trading at around $36,000, I set a price target of $120,000 based on the price pattern of the coin after its halving date.
I’m sure you know this but after so many Bitcoins are mined, the price paid to miners is cut in half. The last one was earlier this year, in April 2024. After each halving, the price of bitcoin goes up as supply drops and the cost to mine new Bitcoin increases.
However, as more people learn about Bitcoin and the cryptocurrency becomes more established, the price change has been less after each subsequent halving day.
Check out this chart:
The last time BTC halved, the price ramped by a factor of 8. However, the halving before that made it go up 30 times in price. After each halving, it goes up less. A reasonable expectation is that it goes up between 3 and 4x during this cycle, which started in April.
That puts the price of BTC somewhere between $120,000 and $140,000 before the next winter sets in.
The next halving day will be in 2028, in case you were wondering.
MicroStrategy Nails It
Today, MicroStrategy (MSTR) is the talk of Wall Street as the share price is jumping on its Bitcoin buys. If you are a long-time reader of your humble editor this isn’t the first time you’ve read about this company.
Back in October of 2022 I first recommended MicroStrategy in an article titled:
Here Is Why You Should Buy Crypto Now
Written By Christian DeHaemer
Posted October 25, 2022
I wrote:
“… MicroStrategy Inc. (NASDAQ: MSTR) one of the biggest holders of Bitcoin, has shorts up to its chin. The company has a short interest of 35.8% of the float. That’s a lot.
As a contrarian, you have to think this thing will fly when these speculators are forced to buy back shares in a short squeeze. The MSTR chart has formed a pennant formation and put in a higher high. The call options have almost no contracts. A breakout seems imminent.”
Today, MSTR surpassed NVDA as the highest-performing stock of the last five years. It is the most traded stock today with a market cap of $96 billion.
The Co-Founder of MicroStrategy, Michael J. Saylor had a brilliant idea a few years ago. He would take his boring old tech company (whose shares hadn’t moved in 20 years) and start buying Bitcoin.
He would then sell shares in MicroStrategy using convertible notes and buy more Bitcoin. And if Bitcoin is in a bull market like it is now, his shares would trade at a premium to Bitcoin. Right now his shares trade at three times the Bitcoin he owns.
And the shares keep going up which means he can sell more shares and buy more Bitcoin.
Today he wrote on X, “Given high demand, we upsized our $MSTR offering of 0% convertible bonds due 2029 from $1.75 billion to $2.6 billion, including a $400 million greenshoe option, and priced it at a 55% conversion premium.”
Zero percent! Free money to buy Bitcoin! What’s not to like? The market tacked on another $60 bucks today alone just for the joy of it.
Bitcoin is trading at $94,000 today – up about 68% for the year. MSTR is up 915% for the year, and 1339% since August 10, 2020, when Saylor started buying BTC.
Don’t get me wrong, I wouldn’t put any serious money into MSTR here. I’d sell half if we get another white candle tomorrow and the other half when BTC hits $120,000.
If you made money off of my MSTR recommendation congratulations. You are what makes my job fun. Keep your eye out for my next special report where we will chase down some more monster gains.
All the best,
Christian DeHaemer
Outsider Club
Brit goes off on inflation: https://www.outsiderclub.com/the-feds-gift-on-inflation/
Will they corner the market on bitcoin: https://www.outsiderclub.com/hunt-brothers-two-electric-boogaloo/
USA, USA https://www.outsiderclub.com/buy-america/
