Bitcoin – Why it is approaching $100,000
Bitcoin paves the way to $100,000 thanks to a red wave and the presence of many bitcoiners in the next United States government.
Bitcoin Strategic Reserve
The next United States government will include 12 people who have publicly endorsed Bitcoin. Among them are at least eight in person. The tide has definitely turned.
“Over the next two quarters, we will make a series of highs. At the government level, everything has changed. Check out this pro-Bitcoin cabinet: President, Vice President, Attorney General, Secretary of Defense, National Security Advisor, maybe even Treasury Secretary.Vaneck director Matthew Siegel told CNBC.
The appointment of Robert Kennedy to head the Department of Health also bodes very well. He pleaded during the bitcoin conference in Nashville to create a BTC reserve equivalent to all the gold in Fort Knox (ie ~$650 billion)…
The prospect of a strategic bitcoin reserve is real. If Senator Cynthia Lummis succeeds in convincing the Senate to buy a million BTC, Bitcoin could climb to $500,000. However, the future is less bright for the barbarian relic. In fact, the senator is of the opinion that the gold from Fort Knox should be exchanged for bitcoins.
Here is Michael Saylor’s take on the likelihood of the United States having a BTC reserve:
“The United States was created by the purchase of Manhattan, the Louisiana Territory, California, Texas, and Alaska. (…) Creating a strategic bitcoin reserve is a great idea and I think it will be implemented. This would give the United States control over the future international network and reserve. According to my models, Senator Cynthia Lummis’ plan could wipe out $16 trillion in debt. »
A rush of institutional investors
Bitcoin’s political recognition is causing a rush of institutional investors. That’s according to the latest quarterly “13F” report that funds managing more than $100 million must file with the SEC.
This report must be submitted within 45 days after the end of each quarter. This delay makes it somewhat out of date at the time of publication, but it is still very informative.
There are big names in finance such as Bank of America, Cantor Fitzgerald, Citadel, Royal Bank of Canada, Goldman Sachs, Morgan Stanley, UBS, HSBC, Macquarie Bank, etc. Please note that Bitcoin investments can be made personally or on behalf of clients. Report 13F does not differentiate.
Anyway, Goldman Sachs, for example, doubled its stake compared to the previous quarter. He holds more than $710 million worth of bitcoins. That’s three times more than Morgan Stanley, which was the first bank to have its 15,000 financial advisors offer bitcoin to its wealthy clients.
Until now, property advisors acted only at the express request of their clients. But things have changed since the election of Donald Trump. The giant fund Berstein now openly advises to invest “as quickly as possible”.
Berstein ($725 billion under management) predicts that Bitcoin will reach $200,000 in 2025. The same goes for Vaneck, who projects $180,000.
The following chart shows how quickly the Bitcoin ETF (from BlackRock) was able to reach $40 billion:
Bitcoin strategy
Bitcoin is a technological breakthrough. For the first time, there is a liquid asset in an absolutely limited quantity. There will be no more than 21 million and only 1.2 million BTC left to be mined. The world is slowly waking up to the existence of an asset that no one has seen before.
Things are also very interesting on the demand side. Microstrategy will soon raise $42 billion to acquire more bitcoins. This is equivalent to buying all the BTC that will be mined over the next three years ($85,000 each).
All institutions will eventually put their money in Bitcoin. The latest to adopt this strategy is Genius Group. Its stock rose 20% just after announcing the conversion of 90% of its cash to bitcoins.
We also learned this week that the US state legislature of Pennsylvania will soon vote on a strategic bitcoin reserve. It is proposed to invest up to 10% of state funds.
“Bitcoin Strategic Reserve Act Aims to Protect the Future of Our Public Finances”said Mike Cabell, a Republican state representative and author of the bill.
Pennsylvania could become the first US state to take the plunge. The states of Michigan and Wisconsin have already invested in bitcoin through their public pension funds.
The icing on the cake is that Microsoft ($75 billion in cash) could join the fray. Shareholders have until December 11 to vote for or against the bitcoin strategy. The risk for MNCs is that their shares will be sold in favor of Bitcoin. CFOs and treasurers realize this…
The dominoes are falling one after the other and it’s hard to see how Bitcoin couldn’t touch $100,000 before the end of the year.
article: “Russian Strategic Bitcoin Reserve Soon? »
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DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.
