How High Will Bitcoin Go?

Dear Reader,

It’s being called the “most hated” rally of the year.

Many investors are ecstatic because it means their portfolios are actually in the black for once this year.

I’m talking, of course, about the huge run-up in crypto — and in Bitcoin specifically.

There’s no ignoring it now, and the FOMO investors are further fueling the rally.

I’m just going to focus on Bitcoin for simplicity here, so let’s take a look at a chart of the coin from the last five years:

If you’ve been a Bitcoin investor for any length of time, you know the significance of price movements.

Traders will often need a certain price to hold in the market to psych everyone else up to buy in.

This year, traders were looking to $40,000, saying that once Bitcoin reaches that level, there’s no going back. (It’s important to zoom out a bit, lest we forget that less than five years ago, it was trading for less than $5,000. And at the height of the pandemic, it was trading above $60,000.) Now investors crypto CEOs are saying Bitcoin will surpass $100,000 in 2024.

But if you’ve read my ramblings for some time, you know I’ve been very skeptical of the entire crypto industry.

How could you not be?

The first time I heard about Bitcoin was learning that some guy used it to buy pizza.

Then it was predominantly used by drug dealers on the infamous Silk Road website, which was shut down by the U.S. Marshals. I honestly thought that was the end of the Bitcoin story for good.

Then amateur crypto miners would sit in their house for days, weeks, and months trying to get a piece of the action.

It’s been through countless booms during which teenagers in their parents’ basements made millions and then lost it all in the eventual bust.

We had crypto swindlers like FTX founder Sam Bankman Chicken-Fried and Binance founder Changpeng Zhao, who are now definitely going to jail. In fact, SBF faces up to 110 years! Doubtful he’ll ever do that much time, though.

One thing’s for sure… It’s the end of the Wild West era of crypto.

So now when people ask me what I’m buying, I tell them Bitcoin.

Don’t get me wrong, I’ve always been a supporter of what Bitcoin stands for: a decentralized monetary system that can’t be manipulated by corrupt politicians. I just didn’t like everything that surrounded it, like I mentioned above. It seemed sketchy, unproven, unmanageable, even illegal.

But with the clear corruption coming from our leaders in Washington, the manipulation of the public we saw with the pandemic, out-of-control inflation that was caused by the government and is now being used to make us poor, along with our overspending on foreign wars, not to mention the volatility in stocks…

Crypto seemed like a safe-haven investment — an even better one than gold…

On October 25, I penned a piece about crypto.

I recounted an article about Ricardo Salinas, a Mexican billionaire who was interviewed by Bitcoin Magazine. He told readers to “Buy Bitcoin, reject inflation.” He also said that as inflation continues to eat away your purchasing power, you should “store your wealth in Bitcoin.” According to the magazine, “Salinas emphasized the importance of educating people about the impact of government monetary policies, which he referred to as fraud. To promote Bitcoin as a tool for financial freedom, Salinas stressed the necessity for individuals to recognize the manipulative nature of the financial system.”

I wrote that “The case for Bitcoin remains even stronger now when compared with gold.” Forbes agrees, saying, “In the old thinking, gold should have rocketed in the pandemic and continued that ascent with the resulting inflation. It has not.”

Had you bought Bitcoin after I published that article, you’d have a clean 25% winner as of this writing.

So what’s behind this huge Bitcoin bull market?

Well, there are a few important factors working in the coin’s favor.

First, as I mentioned above, since we locked up the bad actors in the space, the Wild West days of crypto are essentially over. It’s become incredibly mainstream, which is boosting interest and exposure. I mean, according to Cointelegraph, the Swiss city of Lugano is now accepting Bitcoin and Tether as payment for taxes and community fees, for crying out loud!

Second, and probably most importantly, BlackRock is filing paperwork with the SEC as we speak for approval of its iShares Bitcoin Trust, which it says will invest directly into Bitcoin, not to futures associated with it. Right now there are a handful of ETFs, including the Grayscale Bitcoin Trust, that track Bitcoin, but none that invest directly in it. This will inevitably push Bitcoin’s price higher, and I’m guessing that investors want to get in before this ETF goes live sometime next year. According to Coindesk, “The SEC is widely expected to greenlight one or more spot ETFs early next year, with Bloomberg analysts putting the probability of an approval in January at 90%.”

Finally, brokerage firm Robinhood was approved to release its app to European users. This has opened the floodgates to even more money entering U.S. stocks and even crypto. Robinhood reported in its latest quarterly filing that November crypto trading volumes were 75% higher than October 2023 levels. That’s a massive jump!

I’m excited to see where this goes.

Normally, I’d say a run-up like this is part of a fear-based mania, but this time it feels different. We’ve been at these price levels before with much less real backing. Now that institutional money is really coming online, we could see Bitcoin hit that $100,000 mark.

And it could happen basically overnight.

Good investing…

Stay frosty,

Alexander Boulden
Editor, Wealth Daily

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After Alexander’s passion for economics and investing drew him to one of the largest financial publishers in the world, where he rubbed elbows with former Chicago Board Options Exchange floor traders, Wall Street hedge fund managers, and International Monetary Fund analysts, he decided to take up the pen and guide others through this new age of investing.

Alexander is the investment director of Insider Stakeout — a weekly investment advisory service dedicated to tracking the smartest money on the planet so that his readers can achieve life-altering, market-beating returns. He also serves at the managing editor for R.I.C.H. Report, a comprehensive service that uses the highest-quality investment research and strategies that guides its members in growing their wealth on top of preserving it.

Check out his editor’s page here.

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