The catalysts for higher Bitcoin prices just keep coming…
The first major catalyst came back in January, when heavyweight Wall Street firms like Fidelity, Blackrock, Invesco and Wisdom Tree were given approval to launch Bitcoin ETFs.
The simple fact that an old school firm like Fidelity was moving into Bitcoin was a pretty solid endorsement for the cryptocurrency. An ETF is an easy, cheap and relatively safe way for individual investors to target certain sectors of the stock market…
As in, if you want to own gold, there’s an ETF for that. There are several robotics ETFs. You can buy an ETF that tracks the price of oil, the biggest oil producers, or oil pipeline stocks. You can own all the Magnificent 7 stocks with one ETF…
The ability to gain exposure to Bitcoin through an ETF lowered the barriers for individual investors. Bitcoin ETFs made Bitcoin acceptable. You could own a Bitcoin ETF in an IRA retirement account.
Hammer told you it was time to buy Bitcoin on April 19, 2024, in an article with the unambiguous title Time To Buy Bitcoin. In fact, he specifically recommended the Franklin Templeton Digital Holdings Trust (EZBC) ETF because it has the lowest fees.
Bitcoin was $64,000 at the time. And the Franklin Templeton Digital Holdings Trust (EZBC) was trading for $37.
Bitcoin is zeroing in on $100,000 today, and EZBC is trading at $57.
Bitcoin as a Reserve Currency
President-elect Trump made a campaign promise that the U.S. would hold a “Bitcoin Strategic Reserve.” There may even be a Crypto Czar in the White House.
Now, the U.S. government already owns the biggest stash of Bitcoin of any government – 213,000 Bitcoin worth around $21 billion. China owns the second largest amount of Bitcoin, 91,000. The UK and Germany reportedly own 61,000 and 50,000 respectively.
I find it very easy to imagine that the governments of the world will add more Bitcoin to their reserves, providing solid support for the price of Bitcoin.
Now, check out this table from the good people at Statista research firm. It shows the number of people in 13 countries who either own or have used cryptocurrency like Bitcoin:
The citizens of Brazil and Argentina rank at the top for populations that use crypto. It’s pretty easy to understand why Argentinians have flocked to crypto, given that country’s inflation problems…
Harder to understand is why the U.S. ranks so low. This seems like something that will change. Especially if the U.S. government starts to build a larger Bitcoin reserve…
Gold for Bitcoin
Wyoming Senator Cynthia Lummins will be putting a bill before Congress next year that calls for the U.S. government to take a $90 billion chunk of its gold reserves and “convert” it into 1 million Bitcoin.
Lummins told Bloomberg “We already have the financial assets in the form of gold certificates to convert to Bitcoin…So the effect on the US balance sheet is pretty neutral.”
Here’s something else from a recent Bloomberg Television interview with Michael Novogratz, the head of crypto investment firm Galaxy Digital:
[Novogratz] believes there is a low likelihood that the US will set up a Bitcoin strategic reserve. If the US does create such a stockpile, Novogratz predicted that it would push the price of the largest digital token to $500,000 since other nations would feel compelled to create similar stockpiles.
Clearly, take that $500,000 Bitcoin price prediction with a grain of salt. The real takeaway here is that it is not too late to own Bitcoin. There are several catalysts to send the price higher.
Cheers,
Briton Ryle
Chief Investment Strategist
Outsider Club
X/Twitter: https://twitter.com/BritonRyle
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Hammer’s Bitcoin Forecast
https://www.outsiderclub.com/my-bitcoin-price-prediction/
Inflation is Going Higher
https://www.outsiderclub.com/the-feds-gift-on-inflation/
Gold for Bitcoin
