Bitcoin to 150K!? - Feb 2024 (#7)

Hello dear reader! Your dude Brent has been digging into whats going on with the Bitcoin ETFs and boy do I have some some goodies for you! Let’s just say the Bitcoin ETF launches have been the hottest thing since Uncle Joe dropped his latest steamy calendar. Lets dig in!

Motivation

Money

So I’ve been watching what’s going on with the Bitcoin ETFs and let me just say it’s gotten weeeird. How weird exactly? First, a billion-dollar asset manager name Franklin Templeton Investments gave their twitter profile laser eyes (an inside joke in the bitcoin community). Then another billion-dollar asset manager named VanEck posted the below for Valentines day promoting their ETF that goes by the very on-the-nose ticker HODL.

So what’s with all the love? 💕 These bitcoin ETFs are CRUSHING IT!!! As a result the ETFs are making these money managers stupid amounts of transaction fees! BOOM DOLLA BILLS!!!

So of course these money managers are now pushing Bitcoin on all fronts. Here’s the CEO of the largest money manager in the world, Blackrock, saying Bitcoin is ‘No Different than Gold!’ (This made me chuckle tbh, I’m all about Bitcoin but I don’t think its anywhere near as much a hedge as gold is… yet) And below is Fidelity’s CONSERVATIVE ETF with a 1% allocation to bitcoin!

I personally think this is just great portfolio strategy. It allows you to participate in the upside of crypto and if bitcoin somehow goes to zero (very unlikely, but the odds aren’t zero either!) you’re only out a small portion of your portfolio. Backtesting confirms this strategy as well. I think what the future holds are these money managers pushing something like this strategy HARD in their portfolio recommendations.

Ok, so what’s going to happen as a result of these ETFs? Let me break this down with some grade school math:

• These Bitcoin ETFs have to buy up bitcoin as more money comes in, as of late Bitcoin ETFs have been buying over 10,000 BTC per day

• Bitcoin Miners have been producing about 1,000 BTC per day.

• The total amount of Bitcoin on exchanges, available for purchase is probably about 2,000,000.

Ok so how many Bitcoin will be left by the end of the year!? ZERO!? So, at current levels are we on track to run out of Bitcoin!? Definitely not, what will happen is prices will increase until the buying stops. And at what point will that be? As my clickbait attention grabber stated it could be as high as 150K!!!

So all this sounds amazing, so should you put your entire life savings in Bitcoin!? Or ANY cryptocurrency for that matter? Probably not. Why!? Because unless you won’t need money anytime soon (that’s probably not you) you should probably spread it around. Bitcoin and crypto can be SUPER VOLATILE. Aside from possibly going to zero its just not a great strategy for sleeping well at night. I love the approach put forth by Fidelity, make Bitcoin or any crypto for that matter a smaller portion of your total investments and just let the magic happen.

FINAL MEMES

Fin! Until next time!

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