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Nov 12 (edited) in General discussion
10 Reasons Why Bitcoin is Sky Rocketing Right Now
Bitcoin’s price in USD is up 30% over the last month.
Here are 10 reasons why the price can only go higher:
- Less people are selling.
1 in 3 holders haven’t moved any bitcoin in the past year.
1 in 2 haven’t moved in the last 2 years.
When asked: “When will you sell?” Most bitcoiners now answer with something like:
“Sell and buy what? Bitcoin IS the exit strategy.”
Assuming demand remains steady, with less supply from people selling, the price of bitcoin can only go up.
2. Bitcoin ETFs are growing.
Bitcoin Exchange-Traded Funds (ETF’s) got approved in January.
Do you remember what happened when Gold ETF’s were approved?
1 year later, the price of gold skyrocketed.
But do you know the difference between gold ETF & bitcoin ETF?
Bitcoin ETF’s have already received more inflow in their first year than Gold received in it's first 5 years.
Cameron Winklevoss (multi billionaire investor) says: “People buy ETFs, they don’t sell them. Their investments are sticky so the floor keeps rising. Where are we in the cycle? We just won the coin toss. The innings haven’t even started yet.”
With a bitcoin ETF being sold by so many investing firms (like BlackRock), the price of bitcoin can only go up.
- Bitcoin ETF Options are coming soon.
With bitcoin ETF Options expected within the next 2 weeks, investors are loading up on bitcoin now to prepare.
Why?
Because whenever options get introduced into a commodity, the price tends to skyrocket soon after.
With bitcoin options still ahead of us, the price of bitcoin can only go up.
4. Interest rates are getting slashed.
Whenever interest rates are cut, investors take out money and invest into scarce assets like bitcoin.
Why?
Because if you can borrow money at 5%/year, and put it into bitcoin which gains (on average) 50-100% per year, you'd be crazy not to.
With more investors throwing more and more cheap money at bitcoin, the price of bitcoin can only go up.
5. Bitcoin’s halving has created a "Supply Shock".
On April 19th, 2024, the daily supply of bitcoin got cut in half.
The supply shock usually takes 6-12 months to kick in.
We're now 8 months in.
With less bitcoin being produced, combined with an increase in demand, the price can only go up.
6. There’s a new type of buyer in town.
Up until now, the price of bitcoin has grown purely from peasants like me and you.
But now?
Wealthy investors like nation-states, billionaires, and major institutions have arrived.
And unlike us peasants, these new buyers all share 2 things in common:
Number 1: When they buy, they don’t sell. They don't need to! They're able to produce fiat money with ease.
Number 2: They all want to buy as much bitcoin as possible before Trump gets into office as a way of "front running America."
Number 3: They're happy to buy even when prices are at an all time high.
What's America's plan with Trump in office?
"I want America to be the nation that leads the way in Bitcoin." - Trump, July 2024
Trump says he plans on buying 550 bitcoin per day for the next 5 years.
Note: The total daily new issuance of bitcoin is only 450 bitcoin per day.
With more buying pressure now than ever before from all of these whales, the price of bitcoin can only go up.
7. Weak hands have left the building.
Peasants who need fiat have sold off most of their bitcoin already.
The new bitcoin holders don’t need fiat because they know how to earn more from their business.
With less "Lettuce Hands" and more "Diamond Hands" than ever before, the price of bitcoin can only go up.
8. Expanding user base:
Bitcoin's user base is growing at the same speed as the internet user base grew.
As of 2024, bitcoin has the same amount of users that the internet had in 1998.
But now it's picking up speed...
"Bitcoin will reach 1 billion users in half as much time as it took the Internet to do the same thing." - Jack Choros
With more people joining the network each day, the price of bitcoin can only go up.
9. Money printer is going BRRR:
Central banks are printing more money into the economy, and whenever money gets printed, it goes into the hands of the rich.
And what do the rich people do with their money?
They buy hard, scarce assets like bitcoin.
Bitcoin is strongly correlated with M2 money supply (new money being printed).
With more money being printed into the economy, the price of bitcoin can only go up.
10. Regulatory clarity:
Investors do not invest unless they have supreme clarity.
With increased clarity comes a decrease in risk.
So with all of this new regulatory clarity from nation state leaders around the world (like Trump) coming in, the price of bitcoin can only go up.
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There are 100's of more reasons why bitcoin price will continue to rise, but these were just 10 of them that I've been thinking about a lot recently.
If you can think of any interesting reasons I missed, comment down below :)
Ted
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10 Reasons Why Bitcoin is Sky Rocketing Right Now
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