Bitcoin – Why $100,000 is Imminent
Bitcoin is on its way to $100,000 thanks to the red wave and the presence of many bitcoiners in the next US government .
The next U.S. government will include 12 people who have publicly endorsed Bitcoin. At least eight of them personally own it. The tide has definitely turned.
“We’re going to be hitting highs over the next couple of quarters. Everything has changed at the government level. Look at this pro-bitcoin cabinet: the president, the vice president, the attorney general, the secretary of defense, the national security adviser, maybe even the secretary of the Treasury ,” Vaneck principal Matthew Siegel told CNBC .
The appointment of Robert Kennedy to head the Department of Health is also a very good omen. The latter had pleaded at the Nashville Bitcoin conference for the creation of a BTC reserve equivalent to all the gold in Fort Knox (i.e. ~ $650 billion)…
The prospect of a strategic bitcoin reserve is real. Bitcoin could soar to $500,000 if Senator Cynthia Lummis can persuade the Senate to buy a million BTC. The future is less bright for the barbaric relic, however. The senator is in favor of trading Fort Knox gold for bitcoin.
Here is Michael Saylor's take on the likelihood of the US having a BTC reserve:
“The United States was created by purchasing Manhattan, the Louisiana Territory, California, Texas, and Alaska. […] Creating a strategic reserve of bitcoin is a great idea and I think it will happen. It 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.”
Bitcoin’s political endorsement is sparking a rush of institutional investors, according to the latest quarterly “13F” filings that funds managing more than $100 million are required to file with the SEC.
This report is due within 45 days of the end of each quarter. This deadline makes it somewhat outdated at the time of publication, but it remains very informative.
There are big names in Finance like Bank of America, Cantor Fitzgerald, Citadel, Royal Bank of Canada, Goldman Sachs, Morgan Stanley, UBS, HSBC, Macquarie Bank, etc. Note that bitcoin investments can be made on your own or on behalf of clients. The 13F report does not make any distinction.
In any case, Goldman Sachs, for example, has doubled its stake compared to the previous quarter. It holds more than $710 million worth of bitcoin. This is three times more than Morgan Stanley, which was the first bank to let its 15,000 financial advisors offer bitcoin to their wealthy clients.
Until now, wealth advisors only acted on the express request of their clients. But things have changed since the election of Donald Trump. The giant fund Bernstein now openly advises to invest “as quickly as possible”.
Berstein ($725 billion under management) predicts that bitcoin will reach $200,000 in 2025. Same thing for Vaneck who is counting on $180,000.
The following chart shows how quickly BlackRock's Bitcoin ETF was able to reach $40 billion:
"The IBIT ETF hit $40 billion in assets in 211 days, shattering IEMG's previous record of 1,253 days. It already weighs more than all 2,800 ETFs launched in the last TEN years."
Bitcoin is a technological breakthrough. For the first time, a liquid asset exists in absolutely finite quantities. There will be no more than 21 million of them and only 1.2 million BTC remain to be mined. The world is slowly waking up to the existence of such an asset never seen before.
Things are also very interesting on the demand side. Microstrategy is going to raise $42 billion soon to acquire more bitcoin. That’s equivalent to buying all the BTC that will be mined over the next three years (at $85,000 each).
All institutions will eventually put their cash into bitcoin. The latest to adopt this strategy is Genius Group. Its stock price soared 20% just after announcing that it was converting 90% of its cash into bitcoin.
We also learned this week that the Pennsylvania state legislature will soon vote on a strategic bitcoin reserve. It is proposed to invest up to 10% of the state's funds.
Pennsylvania could become the first US state to take the plunge. That said, the states of Michigan and Wisconsin have already invested in bitcoin through their public pension funds.
The cherry on the cake is that Microsoft ($75 billion in cash) could get in on the action. Shareholders have until December 11 to vote on whether or not to pursue a bitcoin strategy. The risk for multinationals is that their shares will be sold in favor of Bitcoin. CFOs and treasurers are starting to realize this…
The dominoes are falling one after the other and it is hard to see how bitcoin could not reach $100,000 before the end of the year.