Bitcoin has risen almost 63% in about a month … where two experts see it going … why waiting to buy isn’t the best idea
63% of gains in a little over a month …
That’s what Digest readers who acted on our bitcoin trading recommendation on 12/10 appreciate it.
But if you missed the trade, there’s good news …
Our cryptocurrency expert Matt McCall believes bitcoin is heading for $ 40,000, or about 115% more from here.
We’ll get back to Matt in a moment …
First, let’s look at an even bigger prediction, that of billionaire cryptocurrency investor and former hedge fund manager Mike Novogratz.
Earlier this week, he called on Bitcoin to hit $ 65,000 … next year.
This would be a gain of around 250% over the current price.
So, have you missed the wins so far?
Well, whether we’re talking $ 40,000 or $ 65,000, more wins are coming.
*** Novogratz’s prediction happened in an interesting way and shows why an investment in bitcoin today is still early in the big picture
It started when “Game of Thrones” star Maisie Williams took to Twitter on Monday, questioning ethics on whether she should buy bitcoin.
Novogratz responded, pointing to the $ 65,000 mark due to a “network effect” in which there are a ton of new buyers and a low supply.
(Matt pointed to this same supply / demand issue as a major catalyst for gains.)
Here’s the full Twitter response (Novogratz typos):
I bought over $ BTC last night at 15800. It’s going to 20k and on. Up to 65k. The network effect has taken over. I see tons of new buyers and there is very little supply. It’s easier trade here than at 11k. So YES, buy it.
Now, what is just as interesting as Novogratz’s prediction are the wider Williams poll results.
With over 902,000 people responding, 53.4% cheered on Williams do not to go long bitcoin.
*** And that’s good news for Bitcoin bulls
Bubbles that appear painfully – like the burst of Bitcoin after its race in 2017 – tend to inflate irrational exuberance.
It’s the fear of missing out on something that prompts people to buy at absurd prices, nosebleeds that aren’t backed by fundamentals.
True organic growth tends to happen differently.
There are less fireworks. No more investor doubts, no more anxiety.
Yet behind this “wall of worry”, if we only look at the facts, we would see signs of fundamental strength for the asset.
This is what is happening with bitcoin today.
Let’s just look at the last few months …
In October, global payments giant PayPal Holdings began allowing customers to buy and sell bitcoin and other cryptocurrencies from their accounts. Bloomberg reports that 26 million merchants in the PayPal network now accept cryptocurrencies.
Also last month, payments player Square started holding some of its cash reserves in bitcoin. He bought 4,709 bitcoins, worth around $ 50 million. This represents around 1% of Square’s total assets at the end of the second quarter of 2020.
And in August, Fidelity Investments (with $ 3.3 trillion in assets) announced the launch of its first Bitcoin mutual fund. These are just the latest adoption dominoes to fall in a long progression of similar stages.
And all of this supports a take-out …
Bitcoin is gaining strength.
His cultural awareness is growing. The big investment institutions buy it, which makes it more legitimate. And the broader macroeconomic situation of our global economy is creating the conditions for even stronger demand in the quarters and years to come.
So 53.4% of Williams poll respondents don’t think she should buy it?
*** Look at the poll results from a different perspective
What if, say, 92% of respondents had said, “Yes! Buy, buy, buy! “
Well that would have suggested that we are seeing the same insane greed that fueled the run of 2017. While it’s fun to be a part of when you’re already invested and watching your portfolio’s value rise, it’s also the bubble trick. It rarely accompanies real and sustainable growth.
Here is a prediction …
When bitcoin actually hits $ 40,000 or $ 65,000, a poll asks “buy or not?” at this point, it will likely result in a much higher percentage of “yes” s. Say, 80% +.
And this is where it will be precisely the false it’s time to initiate an investment.
Not because bitcoin will have peaked at this point (in the long run it will likely go much higher), but because even in a bull market, moments of irrational exuberance must appear. The foam must give way to withdrawals of 20%, 30%, even 50% +.
But if you are the ‘me too’ investor who bought just before such a pullback, or you are the shy investor who is waiting for proof that bitcoin is here to stay (so you are buying closer to that high at the place) of today), you may be shaken by such volatility – the unfortunate “buy high and sell low”.
*** Investing today when a lot of people say ‘don’t buy’ is safer than later when everyone is on board
It reminds me of a quote from asset manager and president of Research Affiliates, Rob Arnott:
When investing, what is comfortable rarely pays off.
Let us remember why the future of Bitcoin is so bright.
Frankly, there are plenty of tailwinds we could point to, but let’s just focus on two – one with a defensive goal, one with an offensive goal.
In defense, all we have to do is look at the amount of debt and the creation of fiat money in our country today, and what that means for the dollar.
In a recent update from Matt to his Ultimate Crypto subscribers, he noted that the U.S. government has already spent $ 3 trillion in economic aid related to COVID-19.
And members of Congress are now debating whether to add another trillion dollars, perhaps more, to another round of stimulus.
As to how this affects your wealth, Matt points to the purchasing power of the consumer dollar in the United States, as tracked by the Bureau of Labor Statistics.
He hit a lowest ever from 38.4 last month.
Here’s Matt with the take out:
Please do not overlook the importance of this.
Inflation is one of the biggest dangers facing those of us saving for retirement. This can seriously harm the future purchasing power of the money you save today …
As government spending continues to rise and the threat of inflation increases with it, the appeal of today’s cryptocurrencies is also increasing.
Simply put, digital currencies – like bitcoin and other select altcoins – cannot be degraded by inflation.
*** And what about the offensive reason for owning bitcoin today?
Well, that involves the transfer of wealth from baby boomers to millennials, and what that means for bitcoin and altcoins.
Back to Matt:
According to Cerulli Associates and Coldwell Banker, approximately $ 68 trillion will be passed on to millennials over the next several decades.
At the end of the Roaring Twenties, millennials will have 5 times more wealth than today.
Millennials are more inclined to invest in bitcoin, which bodes well for the entire crypto industry.
Over 67% of people aged 25-44 said they would definitely or likely consider investing in bitcoin. Compare that to just 30% of people aged 55 to 64.
The future demand for bitcoins and altcoins is basically guaranteed, simply from the transfer of wealth to the younger generation.
Another study by The Tokenist last month agrees with Matt’s conclusion.
He compared attitudes towards bitcoin from 2017, during the bubble, to attitudes today.
Of The Tokenist (emphasis mine):
The results are striking.
We saw increased knowledge and growing confidence in bitcoin among all age and gender groups surveyed.
This effect was most pronounced among millennials, 45% of which would now preferentially invest in bitcoin over stocks, real estate and gold.
So let’s put two and two together …
Generation Y will inherit 5 times the wealth they have today this decade …
And they prefer bitcoin to stocks, real estate, and gold.
It’s basically a roadmap for how bitcoin climbs hundreds of percent, if not more, from here.
We know it happens. And we can position ourselves ahead of him today.
*** But despite all of Bitcoin’s potential gains, Matt remains even more bullish on elite altcoins
From Matt’s October issue of Ultimate Crypto:
… It’s not too late to position yourself for big wins in the future.
In fact, after retreating from their highs, most of our altcoins are crying out to buy.
About a week and a half ago, we introduced such an altcoin, Chainlink. Matt’s subscribers have already blocked 552% gains on a third of their LINK position.
Since Digest, LINK has hit around 16% as of this writing. Not bad for less than two weeks.
To learn more about Matt’s Ultimate Crypto service, and what specific altcoins it thinks will climb higher than bitcoin, click here.
The bottom line is that bitcoin and elite altcoins are poised to create great wealth for investors. You are not too late.
Have a good evening,