Bitcoin to the Moon: Should You Chase the Crypto Bull Market?
Finally, Bitcoin has taken off. The guys in the market predicted $ 50,000 for Bitcoin in early January. Were there. Now what? Should you chase?
Of course, there is nothing to chase after if you are investing money that you cannot afford to lose. Otherwise, heed the advice of Jim Cramer and Elon Musk. Buy at least some bitcoin. Even if it means buying the Grayscale Bitcoin Trust (GBTC), which is the easiest way and beats the setup of those pesky cryptocurrency wallets with passwords as long as that offer.
So the answer to the headline is this: Using the old method of calculating the average dollar value, put $ 50, $ 100, or $ 1,000, whatever you can live without, in the Grayscale Bitcoin Trust. Open a crypto account with Coinbase or a financial advisor if you have more money to play with. Bitcoin may not go to the moon wherever Bitcoin’s metaphorical moon ($ 100,000? $ 1 million?) Is, but it is an asset worth owning now, and almost everyone on Wall Street will admit it.
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Bitcoin Price Prediction for 2021: Where is the Top?
Following the massive rise in Bitcoin prices, this is why February can be very big for Bitcoin
Allianz chief economic advisor Mohamed El-Erian told CNBC on February 11 that the case for investing in bitcoin has reached a tipping point. Yes, we’re in bubble territory, but it’s rational because of all this liquidity, he says. Some of the gold goes into bitcoin. Gold is no longer seen as the only remedy.
Wealthy individual investors as well as corporate investors do well in the securities markets. This means they are making millions. Crypto investors are even better. Some cash out and buy hard assets such as real estate. Money is everywhere. This bodes well for all securities, even in the midst of a pandemic (or at the end of a pandemic, if you want to hope so).
Last year was the year of many unprecedented global events, namely the worst pandemic since the Spanish flu of 1918. About 2 million people have died in less than 12 months from one mysterious virus of unknown origin. However, the markets ignored all of this thanks to incentives.
The initial turmoil in February and March last year made investors look back at the Great Recession of 2008-09. They saw low prices as a shopping opportunity not to be missed. They accumulated. The year ended with an increase in the S&P 500 index by 16.3%, and the Nasdaq index by 43.6%.
This year started off well, with the S&P 500 up more than 5.1% as of February 19. Bitcoin fared even better, climbing from about $ 3,500 in March to about $ 50,000 today.
Factors Behind Bitcoin Moon
Some of them were quite public, for example Tesla TSLA -0.8% spent over $ 1 billion storing bitcoins in its corporate treasury account. In December, Massachusetts Mutual Life Insurance announced that it had invested $ 100 million in bitcoin and also acquired $ 5 million in equity in NYDIG, an institutional crypto store with $ 2.3 billion under management.
But many of these corporate actions were not made public, according to investors at Halycon Global Opportunities in Moscow.
Fidelity estimates that 40-50% of bitcoin holders are institutions. Into the Block also demonstrates evidence of this: large transactions (over $ 100,000) currently average over 20,000 per day, up from 6,000 to 9,000 transactions of this size per day at the start of the year.
This is largely due to the expansion of the institutional-grade infrastructure available to professional investment firms, including Fidelity’s digital asset storage solutions.
Institutional investors accounted for 86% of Grayscale ETF inflows, as well as 93% of all inflows in the fourth quarter. This is despite the fact that Grayscale’s premium to the BTC price in 2020 was 33%. Institutions without the ability to own BTC were willing to pay 33% more than they would pay simply to buy and store BTC in a cryptocurrency wallet. Says Daniel Wolfe, manager of the Halycon Simoleon Long Term Value Fund.
The Simoleon Long-Term Value Fund kicked off 2021 with a 34% gain in January, surpassing the 32% gain for Bitcoin in euro terms. BTC rose from $ 7195 in November to $ 29,000 on December 31, up about 303% in dollar terms in about four weeks. The market as a whole also performed well in 2021, with the total cryptocurrency capitalization reaching $ 1 trillion.