Please click the link to listen to the 86th episode of my weekly crypto podcast ‘Five Minute Crypto.’ These are intended to be short, single-topic ramblings on some aspect of the cryptosphere. Consider dropping a like and or a review on iTunes or Podbean if you enjoy the podcast. Comments and critiques welcome.
Welcome to Five Minute Crypto – this week’s episode outlines 10 reasons to be bullish about Bitcoin in the here and now.
From the lows of March to the highs of July it has been a hell of a ride. Thankfully, the trend has been onwards and upwards.
Before we begin – none of the points that follow presume that BTC cannot now sharply fall in price. Of course, it can. Indeed, 40% retracements have been commonplace during past BTC bull runs. There is absolutely no reason to suspect this time will be different. Who knows, perhaps steeper declines await? Given its relatively puny market cap BTC remains open to price manipulation and moments of extreme volatility. Nonetheless, bullish indicators abound.
The Technicals Line Up
Without taking any kind of deep dive – it is clear as day that BTC is above a whole host of averages, whether that be the 200-day moving average or the 21-week exponential moving average. Long-term resistance at $10,500 has been broken and a two and a half year down trend reversed. In addition, volume has spiked and most Bitcoin buyers are sitting comfortably in profit. 63% of BTC hasn’t moved in moved in over a year – another clear bullish indicator. All in all – a lot to be bullish about from a technical point of view.
With hashrate in and around all-time highs currently oscillating between 140 and 125 Exa Hashes – the tired death spiral narrative has been put to bed once again. Don’t worry, it will be dusted off 4 years from now. Bitcoin miners are clearly bullish – perhaps they know a thing or two about return on investment?
Visa and Mastercard Onboard
It’s not that long ago that both Visa and Mastercard were doing their very utmost to stifle blockchain innovation. Well, the worm has turned and they’ve seen the light. Both are scrabbling to facilitate crypto transactions – given their enormous customer base – this is a long-term positive driver for the space.
Paypal was just as opposed to Bitcoin but has also publicly announced their commitment to servicing the cryptosphere. With over 240 million customers the entry of such a behemoth in the crypto industry will almost certainly drive broader adoption.
US Banks Cleared to Custody Crypto
The Office of the Currency Comptroller just greenlit US banks to custody crypto. A massive segment of the legacy financial system just had a structural impediment to entering the crypto market removed. Some banks may choose to remain on the sidelines but with JP Morgan already making a play – it seems likely more will follow perhaps even a stampede.
The Gold/Silver/Bitcoin Narrative
With gold hitting all time highs and silver having its best week in 40 years -safe haven assets are in vogue. Bitcoin for those who take the time to research it – is exactly that. Scarce, predictable in terms of supply and issuance. Bitcoin as digital gold has gone mainstream – niche mainstream perhaps – but there, nonetheless. BTC as a hedge in uncertain times continues to gain inexorable traction.
Printer Go Brrr
Three trillion dollars and counting with another 1.5 trillion in the pipeline. The FED printer go Brrrr meme has never been more potent. Bitcoin’s absolute relative scarcity becomes ever more apparent each and every day. With interest rates effectively zero and government bonds returning negative yield when adjusted for inflation – the stark contrast that is Bitcoin has never been more obvious. Is it possible, that investors chasing yield will overlook BTC – sure it’ possible but likely? – No, not at all.
Heavy Hitter Endorsement – Paul Tudor Jones
Paul Tudor Jones positive investment stance re BTC may well be viewed as a tipping point in the coming years. It is hard to overstate the high regard in which he is held. 1% to 2% in Bitcoin may not seem like much but given the many billions of dollars he manages and his broader market influence – it matters. Where Paul Tudor Jones ventures others will follow.
BTC is Now Normal
Notice how no-one bats an eye when you mention you are invested in Bitcoin. They may not understand it or even agree with its premise but one way or the other Bitcoin has become a part of the conversation. Little by little the stigma of magical internet money has dissipated – enthusiasm for that which was once ridiculed looks very likely to follow.
The good news is that the herd has yet to arrive. Sure, Google Bitcoin searches have begun to trend upwards but they are nowhere near the 2017 highs. This current rally hasn’t needed new retail involvement but it is reasonable to assume BTC’s recent price action will begin to attract more attention in the coming months.
Taken in isolation, no-one positive factor really matters but once you begin to view them as a whole a profoundly bullish case for Bitcoin emerges.
As always, thanks for listening.